Insurance Bad Faith is a legal term that describes a claim that an insured person may have against their own insurance company for its bad acts. Insurance companies owe a duty of good faith and fair dealing to the persons they insure. This duty is often referred to as the “implied covenant of good faith and fair dealing,” which automatically exists by operation of law in every insurance contract. It now, also, exists by legislative statute.

When you enter into an insurance contract, you pay either monthly or yearly. In exchange for your payments, the insurance company provides coverage for you (whether that is medical expenses, auto coverage, etc.)

In some cases, insurance companies do not pay insurance claims in a timely manner, and in some other cases, the insurance company will deny a claim altogether.