Bad Faith Insurance Claim

A Bad Faith Insurance Claim is a legal action filed by a policyholder against an insurer, alleging that the insurer acted in bad faith in handling or denying an insurance claim. Bad faith may involve a variety of improper conduct by the insurer, such as failing to investigate the claim properly, denying the claim without a reasonable basis, or engaging in deceptive or unfair practices. The purpose of a bad faith claim is to hold the insurer accountable for its misconduct and to recover damages beyond the policy limits, such as consequential damages, emotional distress damages, or punitive damages. Bad faith claims are typically based on state law and may require a showing of intentional or reckless conduct by the insurer.