By Scott Shawver | Partner | Seattle Office
Purchasing insurance is necessary, and often mandatory. Insurance acts as a protection for you, your family, and your property in case of an accident. When you purchase insurance, the insurance contract can be viewed as the insurance company’s promise that they will follow through on their protection guarantee.
Unfortunately, insurance companies do not always follow through on their promises of protection made in the policy. When insurance companies fail to provide you with coverage or fail to pay a reasonable settlement, they may be acting in bad faith.
We will take a look at what it means for an insurance company to act in “bad faith” and examples of when it would benefit you to seek out a bad faith insurance lawyer.
What Does Insurance Bad Faith Mean?
Insurance companies have a legal obligation to act in good faith and deal fairly with the people they provide insurance services to. The “implied covenant of good faith” is part of every insurance contract, even if it is not written within the insurance policy. An insurance company acts in bad faith when it offers an amount that is unreasonably low or wrongfully denies a claim.
When insurance companies act in bad faith, they are acting illegally and it is wise to consult a bad faith insurance attorney to help you receive the protection promised in the insurance policy.
Examples of Bad Faith Incidents:
Some of the many ways in which an insurance company can act in bad faith are:
- Failing to conduct a reasonable investigation
- Denying a claim without a reasonable basis
- Misrepresenting your rights under the policy
- Unreasonably delaying in making payments
- Failing to defend you against a claim or failing to settle a claim against you
Fortunately, there are state laws, like the Insurance Fair Conduct Act (IFCA) in Washington State, which protect insured people. Legislation like this can significantly penalize insurance companies who act in bad faith.
What to do if Your Insurance Company Acts in Bad Faith?
If you believe that your insurance company acted in bad faith, we recommend that you consult with a qualified insurance lawyer.
At GLP Attorneys, we have significant and deep experience helping injured people receive the settlements they deserve under their insurance policies. We have a proven track record of making insurance companies live up to the promises made in the insurance policy, and with decades of experience in handling insurance bad faith claims, we are here to help you.
Call us today at 206.752.4092, or email our attorneys at attorneys@glpattorneys.com for a free consultation.