Insurance Bad Faith


You buy insurance for peace of mind and protection.
Bad faith is insurance companies letting you down when you need them most.

Today, insurance policies are a way of life. We insure our cars, boats, homes, jobs, health, personal assets and lives. It is not unusual for an individual to have ten separate insurance policies – some required by law. And when insurance companies hold up their end of the bargain, they are literally life-savers! Unfortunately, that’s not always the case.

Bad Faith insurance is when an insurance claim is wrongfully denied by the insurer. An insurance policy is considered a contract between you (the insured) and your insurance carrier (the insurer). This contract requires that your insurer acts in good faith toward you. When an insurer unreasonably withholds the benefits of the policy from its insured, it is considered to be in bad faith.

There are many examples of how an Insurer can commit bad faith:

  • failing to promptly and thoroughly investigate a claim
  • unreasonably delaying payment
  • unreasonably denying benefits to a claimant
  • using unreasonable interpretations in translating policy language
  • refusing to settle the case or reimburse you for the entirety of your loss

If this breach of your insurance policy is demonstrated to be dishonest, deceptive, or fraudulent, punitive damages can be awarded in addition to compensation for the loss under the policy. Punitive damages punish insurers for bad faith and deter similar conduct by the insurer in the future.


Mehr, Fairbanks & Peterson knows the law, has experience with insurance company tactics,
and will fight for the payments that are fair and justly yours.

The property and casualty insurance industry spends upwards of $1 billion a year litigating against its policyholders. If you are forced to go to court against an insurance company, you need Mehr, Fairbanks & Peterson Trial Lawyers on your side. Our team knows the law, has experience with insurance company tactics, and will fight for the payments that are fair and justly yours.

If you have questions about how an insurance company is handling your claim,
contact us today for a no-cost consultation.