Insurance Bad Faith

Can you sue insurance companies for not paying out legitimate claims?

What is insurance bad faith claim?
When you file an insurance claim with an insurance company, by law, in any state, that company owes you a duty to act in good faith. Bad faith claims and lawsuits may stem from one or more of a number of actions or inactions by the insurance company from denial of coverage to failure to negotiate a settlement.

Frequently Asked Questions About Insurance Bad Faith


If your insurance company is only offering half of the repair quotes you should have the mechanic call the insurance company. If that doesn’t work you should write a letter to the insurance company outlining what happened and what you want to happen. Assuming they still won’t budge you should contact a lawyer.

If your insurance company denied your claim by saying that you were doing something illegal when the incident occured you should call a lawyer. It is no use communicating with the insurance company without the threat of pending litigation. Insurance companies don’t make money paying out claims and unfortunately they sometimes force litigation to provide …
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If your claim was denied because the insurance adjuster says the claim was pre-existing you should speak to an expert in the area and get a letter stating the damage was not pre-existing. That will put pressure on the insurance company. Usually this is a mechanic on a car crash case but can be a …
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If an insurance adjuster missed things on a report you should write a letter asking for an explanation of why things were missed. Keep the letter short, sweet, and to the point. That should put pressure on the insurance company because a document exists. Do not have further verbal communication with the insurance company. If …
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If your insurance company is accusing you of fraud to deny a claim you should speak to a lawyer. If you can’t find a lawyer you should write a letter to the insurance company asking for an explanation. You should not have any more verbal communication with the insurance company.

A business can sue an insurance company for denying a valid claim. This happens everyday in the courthouses of Kentucky and the rest of the United States. A corporation can file a lawsuit against the insurance company and seek to hold the coverage valid.

More FAQ About Insurance Bad Faith