“Bad Faith” is an insurance company’s breach of the covenant of good faith and fair dealing that is implied by law in every contract. The breach of this covenant involves conduct beyond a breach of the specific duties under the contract or of mere mistaken judgment.
Grimm Vranjes Greer Stephan & Bridgman LLP defends insurance companies in a wide cross-section of bad faith cases involving allegations that include:
- Inadequate Claim Processing
- Delay in Payment
- Inadequate Investigation
- Unreasonable Denial of Claim
- Negligent Handling of Defense
- Failure to Defend
- Breach of Contract
Insurance companies that fail to take immediate action to resolve claims of bad faith open themselves to protracted litigation and potential exposure to punitive damages. The complex regulations that govern insurers change frequently, and a failure to comply with current regulations could result in significant penalties. Further, the residual negative perception of an insurance company accused of acting in bad faith can have as severe financial repercussion as any extended litigation.