American consumers  and businesses  buy insurance coverage to protect their personal  and business assets from collection in the event that a claim is brought against them for causing an accident or injury. Their insurance company has a legal duty to make decisions regarding the claim that do not unreasonably expose the policyholder to the risk of losing their assets.   While it is legally permissible for the insurance company to fight the claim in an effort to avoid paying out any money, the insurance company cannot unreasonably pursue the fight to the extent that the policyholder is at risk for a court judgment that would exceed the amount of insurance coverage the policyholder has  in place.  If the insurance company unreasonably fights the claim, resulting in a judgment that exceeds the insurance coverage, and the policyholder’s assets  become  subject to collection, the policyholder may sue their own insurance company for Bad Faith.  Bad Faith is simply the allegation that an insurance company negligently or improperly failed to settle  or to adjust a claim for an amount of money within the amount of insurance coverage, and it resulted in the policyholder being placed at risk of losing their assets.

If you would like us to investigate your claim, contact our office for assistance.