Everyone says the same thing following an accidental injury or property damage: “That’s what insurance is for.” People with insurance policies pay premiums every month for the peace of mind that comes with knowing they will not be financially ruined by an unexpected illness or injury. Unfortunately, some of them are let down by their insurance companies in their time of need.
The Covenant of Good Faith and Fair Dealing
Every insurance contract contains a promise or covenant of good faith and fair dealing. This may or may not be written out in the paperwork; it is considered an inherent part of a legal contract. When an insurance company offers a contract, they are making a promise to treat their client fairly and uphold all of the agreements in the contract.
If you file an insurance bad faith claim, a judge will review your contract to see if the promise of good faith and fair dealing is being kept. If there is any ambiguous language in the contract, the judge has an obligation to interpret it in favor of the client: you.
If your case is successful, you could win your originally owed insurance payments, as well as damages for the problems you have suffered due to your insurance company’s poor behavior.