BAD FAITH

Bad faith is a specialized subset of insurance law focusing on claim handling on a first and third party basis.  On a first party basis, if an insurance company is deemed to have handled a claim in bad faith, certain jurisdictions allow for payment of the insured’s attorney’s fees, as well as other damages, including potentially punitive damages.  On a third party basis, in certain jurisdictions, if an insurance company is determined to have acted in bad faith, not only are attorney’s fees awardable in successfully litigating bad faith, but insurance companies may also become liable for substantial verdicts in excess of policy limits.  Since an ounce of prevention is worth a pound of cure, our attorneys not only focus on defending insurance companies against bad faith claims, but also conduct in-house training to help companies spot high-exposure bad faith issues before they arise.