Insurance Bad Faith
Insurance bad faith is a legal term used among lawyers to describe a tort claim that an insured person may have against an insurance company for its bad acts or wrongful conduct. In return for payment of premiums, an insured person or business relies on the insurance company’s promise to provide protection and peace of mind for certain events that may occur that could cause personal or financial loss.
Under California law, insurance companies owe a “duty of good faith and fair dealing” to the individuals and businesses they insure. The duty is referred to as the “implied covenant of good faith and fair dealing” and exists in every insurance contract. If there is a breach of the covenant of good faith and fair dealing, an insured may not only sue for breach of contract under their insurance policy but also under a tort cause of action which gives rise to other damages, including punitive damages, which are not otherwise available for contract claims. Bad faith claims usually occur when an insurance company wrongfully denies payment for a claim under a policy of insurance such as an automobile, homeowners or life insurance policy. However, bad faith claims can arise from denials under all policies of insurance.
The Law Offices of Thomas R. Nigro has handled insurance litigation including bad faith claims for many years. We offer a free consultations to insureds who believe they have not been treated fairly by their insurance company.