We’ve all seen them—advertisements that portray the insurance company as a protector. When everything goes right, this portrayal can ring true. But what about bad faith insurance practices? Your insurance provider is supposed to act as a suit of armor for your and your loved ones. You hope you won’t need it, but you pay for it anyway, just in case the worst happens. When your insurance company acts in bad faith, it’s as if you were imagining that you were wearing the armor the whole time—when that happens, you need to take action. What Is Bad Faith Insurance? Insurance companies—as many of their ads claim—are supposed to protect their policyholders. When an insurance company fails to do so, either intentionally or negligently, that is what is known as a bad faith insurance practice. Insurance companies have an obligation by law to act in good faith. What that means is that when you file a claim, your insurance provider shouldn’t look for ways out of investigating the claim or paying you what they owe you. A Look at a Bad Faith Insurance Case Way back in the 1990s, the former owner of an auto repair shop had to file a …
