Definitions & Examples of Bad Faith Insurance

Explanation from Practiced Bad Faith Insurance Attorneys in Rancho Santa Fe

Bad faith insurance is divided into both first-party and third-party categories. Both cases involve an insurance company failing to act in the best interests of the insured. You can read more about each type of bad faith claim below, or call and speak directly to our Rancho Santa Fe bad faith insurance lawyers about how your insurance provider has mistreated you.

The law offices of LiMandri & Jonna LLP can be reached at (858) 247-3828. We are eager to speak with you.

First-Party Bad Faith Insurance

This describes an instance where your insurance company is denying or delaying your claim without valid reasoning. After filing a claim, the insurance provider has a duty to quickly investigate the claim and promptly provide the appropriate payout. If your insurance broker is taking an unreasonable amount of time investigating the claim, or their investigation feels particularly invasive, you should speak with an attorney about pursuing a bad faith claim. A dispute with your insurance company as to whether or not your incident is covered can also be grounds for a bad faith lawsuit.

Third-Party Bad Faith Insurance

Third-party bad faith is when your liability coverage provider fails to settle a suit from an injured or wronged party after an accident. Liability insurance is intended to cover you when you were the cause of an accident and need to pay for damages to the other party. The job of the insurance provider is to both mitigate your own responsibility for the accident and resolve the matter as quickly as possible. Bad faith has occurred with the insurance provider has not properly defended their insured, or refuse to reach an agreement with the opposing side.

Bad Faith Insurance Cases We Handle

Bad faith insurance lawsuits are fairly common. For your benefit, we have compiled a list of examples of bad faith claims where courts ruled in favor of the plaintiffs.

The following examples of bad faith insurance:

  • Delaying payout for an insurance claim after it has been approved
  • Refusing or delaying a claim investigation
  • Refusing to explain why a claim was denied
  • Raising premiums by an unreasonable amount after a claim is filed
  • Canceling a policy after the insured collects a claim
  • Paying out less than then the insured is entitled to

Have Questions? Call (858) 247-3828 Today

At LiMandri & Jonna LLP, we are dedicated to helping clients understand their rights to compensation. Our Rancho Santa Fe bad faith insurance attorneys are happy to answer any questions you may have about insurance disputes. We also provide more specific examples of first and third-party bad faith on our types of bad faith insurance page.

Call (858) 247-3828 to discuss any questions or set up a free consultation with our seasoned legal team.

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Call (858) 247-3828 or fill email us at to schedule your free consultation.