Can You Win a Bad Faith Claim?
Filing a bad faith insurance claim is one thing, but proving it in court is another challenge. While the law is designed to protect policyholders, the burden of proof often makes these cases difficult. Here’s what you need to know about why it can be hard to win a bad faith claim and what factors can improve your chances.
Understanding a Bad Faith Claim
A bad faith claim arises when an insurance company fails to uphold its duty to act fairly and in good faith toward policyholders. Examples include:
- Unreasonable claim delays
- Denying valid claims without explanation
- Offering unfairly low settlements
- Misrepresenting policy terms
To win, the policyholder must prove the insurance company acted unreasonably and not just that a disagreement occurred.
Burden of Proof
The biggest challenge is the burden of proof. Courts require clear evidence that the insurance provider acted in bad faith. This means policyholders must provide detailed documentation, such as:
- Communications with the provider
- Claim paperwork and adjuster notes
- Records of delays or denials
- Without this evidence, the case often falls apart.
Insurer Defenses
Insurance companies normally have strong legal teams and may argue that:
- The denial was based on policy exclusions.
- The claim required further investigation.
- The settlement amount offered was reasonable.
- These defenses make it harder for policyholders to prove malicious or negligent intent.
Factors That Improve Success
While difficult, winning isn't impossible. Claimants often succeed when:
- They maintain thorough documentation of the claim process.
- The insurer clearly violates state insurance laws, such as Texas’s Unfair Claims Settlement Practices Act.
- Expert witnesses, like public adjusters, support the claim.
- Legal representation specializes in insurance law.
Conclusion
Winning a bad faith claim is often hard because the law requires policyholders to prove the insurer acted unreasonably or dishonestly—not just unfairly. However, with strong documentation, legal guidance, and evidence of violations, policyholders can and do win these cases.
