What Is Bad Faith?

‍Bad faith in personal injury law occurs when an insurance company or another party deliberately acts unfairly or dishonestly to avoid fulfilling their legal or contractual obligations.

This often involves denying or delaying a valid claim without a reasonable basis, offering unfairly low settlements, or failing to investigate a claim thoroughly. Bad faith actions undermine the rights of victims seeking compensation and can result in additional legal claims against the offending party.

Common examples of bad faith practices:

• Unreasonable Delays: Failing to process or pay out claims in a timely manner.
• Lowball Offers: Offering settlements that are far below the fair value of the claim.
• Improper Denials: Denying a legitimate claim without a valid reason or adequate explanation.

Why Is Recognizing Bad Faith Important in Personal Injury Cases?

Identifying bad faith is crucial because it protects victims from being taken advantage of during the claims process. It also ensures that insurance companies and other entities are held accountable for their actions. Key reasons include:

• Fair Compensation: Victims can pursue additional damages, such as punitive damages, when bad faith is proven.
• Legal Protection: Recognizing bad faith allows victims to take legal action, often through a bad faith insurance lawsuit.
• Accountability: Challenging bad faith practices discourages unethical behavior by insurance companies and other parties.

Victims who suspect bad faith should consult with an experienced attorney to protect their rights and pursue the full compensation they deserve.