What is the difference between breach of contract and bad faith insurance claims?

Breach of contract and bad faith insurance claims are separate legal concepts that involve different rights and remedies. Breach of contract is an intentional or unintentional wrongful act or failure to act which contravenes or fails to comply with the terms of a contract. Breach of contract and may result in damages to parties depending on the circumstances. Bad faith insurance claims, on the other hand, is a legal concept used in insurance law in Washington that occurs when insurance companies fail to honor claims without sufficient cause. This can include failure to acknowledge a valid claim or improperly denying a valid claim. Bad faith insurance claims may also involve an insurance company acting in bad faith by not providing equitable compensation for a claim, delaying payments, and other wrongful acts. The remedies for breach of contract and bad faith insurance claims vary. In Washington, breach of contract is often subject to civil litigation, and the usual remedies for breach of contract are either specific performance (requiring the breaching party to perform the contract) or damages for the losses suffered due to the breach. On the other hand, bad faith insurance claims are often subject to civil litigation, too, but the usual remedies are usually damages for the losses suffered from the bad faith insurance claim.

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What is the difference between breach of contract and bad faith insurance claims?

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