When Insurers Cross the Line: How Bad Faith Insurance Claims Are Identified and Litigated
Insurance exists to protect during stressful moments. People pay premiums with the expectation that help will be available when a loss occurs. Problems arise when insurers fail to honor that promise. Bad-faith insurance claims involve situations in which insurance companies act unfairly, delay payments, or deny valid claims without justification. These actions can cause severe financial and emotional harm to policyholders. Bad faith behavior is not always apparent at first. Insurers may appear cooperative while quietly delaying or limiting coverage. Over time, these actions cross legal boundaries. Understanding how bad faith occurs and how it is challenged helps policyholders protect their rights and hold insurers accountable. What Bad Faith Means in the Insurance World Bad faith happens when an insurance company fails to act honestly or fairly toward its customer. Insurers have a legal duty to handle claims properly. This duty includes promptly investigating claims, communicatin...
