What are the common causes of action in an insurance claim?

Insurance claims in Washington can be based on a few different causes of action. The most common are breach of contract and negligence. Breach of contract occurs when an insurer does not fulfill the duties owed by the terms of the contract. This could be a failure to pay for a valid claim, refusing to pay a legitimate claim, or failing to act in good faith. Negligence occurs when the insurer fails to meet its duty of care, resulting in an injury or loss. Another possible cause of action is misrepresentation, which occurs when an insurer makes a false statement or promises something that it is not legally obligated to do. This could be an incorrect statement of coverage or a promise to pay a claim that cannot be fulfilled. In addition, some claims may also be based on bad faith, which occurs when an insurer mishandles a claim or fails to treat the insured fairly. This could include failing to promptly investigate a claim, denying a valid claim without good reason, or not following through with promises to pay for a claim. Finally, insurance claims could also be based on breach of fiduciary duty. This occurs when an insurer acts in their own interests instead of the insured’s and puts the insured at a disadvantage. This could include failing to provide a good faith estimate of a claim or not properly communicating changes to the insurance policy.

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What are the common causes of action in an insurance claim?

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