Insurance
Bad faith
Bad faith is an insurer's unreasonable handling of a claim — denying without basis, delaying without cause, or failing to settle within policy limits when it should — which can expose the insurer to liability beyond those limits.
A bad faith claim is separate from the underlying injury claim and is generally pursued after it.
The threat of it is one of the few real levers against an insurer that is simply not moving.
Related terms
- Insurance adjuster — An insurance adjuster is the insurer's employee who investigates a claim, evaluates it, and negotiates settlement on the insurer's behalf.
- Policy limits — Policy limits are the maximum amount an insurance policy will pay for a claim, and they frequently cap a claimant's practical recovery regardless of how severe the injuries are.
Need the money rather than the definition?
Apply in two minutes, or call 813-798-5528 and we will explain any of this on the phone.