What Is Insurance Bad Faith?
Bad faith occurs when an insurance company fails to honor its obligations to you - the policyholder - without a reasonable basis. Insurance is a contract built on mutual good faith: you pay premiums, and when you have a covered loss, the insurer pays your claim fairly and promptly.
When insurers break this promise through unreasonable denials, excessive delays, lowball offers, or failure to properly investigate, they're acting in "bad faith." This gives you the right to sue not just for your policy benefits, but for additional damages - sometimes far exceeding your policy limits.
Bad faith claims are powerful because they transform a simple contract dispute into a tort (wrongful conduct) case. This opens the door to emotional distress damages, punitive damages, and in California, attorney's fees under the Brandt doctrine.
Bad Faith Topics
Explore each aspect of insurance bad faith in depth.
Understanding Bad Faith
The fundamentalsLearn what bad faith means legally and when you might have a claim against your insurer.
Denial Tactics Exposed
How insurers say noRecognize the tactics insurers use to wrongfully deny legitimate claims.
Bad Faith Damages
What you can recoverBad faith claims can recover damages far beyond your policy limits.
Take Action
Fight back effectivelyPractical steps to document bad faith and pursue your claim.
California Bad Faith Law
Special protections for California policyholders
California has some of the strongest policyholder protections in the nation. The Fair Claims Settlement Practices Regulations create specific duties for insurers, and California courts have developed robust case law on bad faith claims. California also allows recovery of attorney's fees through the Brandt doctrine - a significant advantage for policyholders.
Need Help With Your Claim?
I help policyholders fight back against insurance companies that act in bad faith. Whether you need a demand letter, help documenting violations, or representation in a bad faith lawsuit, I can help you get the compensation you deserve.