Bad Faith Insurance Claims
When you believe that your insurance company isn’t negotiating in good faith, do you know your options? In the insurance industry, sometimes key phrases commonly used can make adjusters sit up and take notice. When you find yourself negotiating a settlement with your insurance company (for example, for part of your uninsured or underinsured motorist coverage), bad faith can be of these commonly used phrases.
Due to the fact that your policy is a paid-for guarantee from your insurance company that they are obligated to provide you with insurance protection, the insurance company has an obligation to provide your protection, and also to settle and negotiate claims, in good faith.
Third-party insurance companies also have a duty of good faith toward an injured person, but that obligation is much less than the obligation to you by your own company. A bad faith claim against a third party’s insurance company only arises if the company, through its adjuster, has engaged in outright fraud, lies, or has interfered with your ability to pursue a claim (examples include withholding evidence, tampering with a witness, etc).