Insurance Bad Faith

Insurance companies have a duty of good faith to the people they insure by handling claims promptly, accurately and willingly. Insurance bad faith is a legal term that refers to an insurance company’s breach of duty to honor an insurance contract or the responsibilities associated with how a claim is handled. This can occur with any type of insurance, from renters and homeowners insurance to automobile, health or dental insurance. 


Insurance law requires that insurance policy language is clear and unambiguous. Policies are considered binding agreements between the insurer and the insured, and both have a legal responsibility to maintain good faith.


Examples of insurance bad faith acts include:


  • Failure to pay claims
  • Intentionally postponing a payment
  • Agent or broker negligence
  • Failure to make a reasonable settlement offer within policy limits
  • Altering a policy without the policyholder’s knowledge
  • Negligence in investigating a claim properly
  • Threats or harassments to policyholder
  • Not informing the policyholder of additional benefits


An insurance bad faith attorney can help you understand your rights when bad faith occurs. The attorneys at The Gilliam Firm, PLLC have successfully represented clients who have been affected by insurance bad faith and can help you seek the justice you deserve. If you or a loved one has been faced with breach of duty, please contact us for a free consultation on your case.