The Top 5 Things to Know About Bad Faith Insurance Claims

Implied in every insurance contract is the promise of “good faith and fair dealing,” which essentially means that the insurer must not harm your right to receive benefits under the policy. To comply with its promise to act in good faith, an insurance carrier must adhere to certain duties such as accurate communication, timely investigation or full payment of what is owed.

Under the law, an insurance company must honor your policy and failure to do so by undervaluing or delegitimizing your claim can be construed as an act of bad faith. Determining whether there has been bad faith conduct is important, in part, because it directly affects the insured’s potential recovery. If the insurer is found to have acted in bad faith, the insured may have access to a substantial additional recovery.

The vast majority bad faith insurance claims typically involve the following actions from an insurance company:

  • Improper attempt to terminate your policy after a claim has been filed
  • Unreasonable delay in paying or settling your claim
  • Misrepresentation of the policy provisions
  • Failure to properly investigate your claim
  • Providing false or misleading information about claim status

Proving bad faith can often be a difficult and complex process to navigate and that’s why it’s important to have an experienced attorney to help guide you through the practice. If you or someone you know was the victim of bad faith insurance, contact our Miami bad faith insurance lawyers at the Acle Law Firm at 305-447-4667, or visit, for an absolutely free and confidential legal consultation to learn more about your options.