What is a claim for bad faith?

A claim for bad faith is a legal theory in Washington which provides a remedy when an insurance company breaches its contract to the insured. The insured must prove that the insurance company acted in bad faith during the insurance claim process. If the insured can successfully prove the insurance company acted in bad faith, they may be able to recover additional damages. Bad faith usually involves the insurance company not taking reasonable steps to investigate and process the claim. This may include unreasonably denying a claim, delaying payment, underpaying the claim, lying about coverage, or failing to act in good faith in negotiating a settlement. The insurance company must owe the insured a duty of good faith and fair dealing. In addition, bad faith claims may arise when the insurance company fails to properly explain to the insured what coverage is available to them. The insurance company must properly explain the insurance policy to the insured before they can accept or deny a claim. If the insurance company does not explain the coverage correctly or fails to explain certain aspects of the policy, then it may be found to have acted in bad faith. To prove bad faith, the insured must show that the insurance company engaged in an unfair or deceptive practice and the insured suffered damages because of it. Bad faith claims are very complex and require an experienced attorney. If the court rules in favor of the insured, they may be awarded damages that exceed the original claim amount.

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What is a claim for bad faith?

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