Bad Faith Insurance

You buy an insurance policy and assume that you will be compensated by the insurance company if you suffer a loss. A contract is signed between you and an insurance company--your insurance policy--which sets out terms and conditions specifying the amount of coverage or compensation payable to you should you claim a loss or injury. Depending upon your contract, it may cover you against a personal injury or damage to your vehicle or a catastrophic event such as Hurricane Katrina.

Sounds straightforward--you buy insurance and assume that you will be compensated by the insurance company if you suffer a loss. Unfortunately, this is not always the case. Some insurers will deny your legitimate claim even if they don't have a valid reason to do so. When an insurance company breaches your trust, you feel betrayed. The company is then acting in bad faith.