When Insurance Doesn’t Play Fair: Understanding Bad Faith Claims

Congruence Law Stands Up for Policyholders When Insurers Delay, Deny, or Underpay

You pay your insurance premiums with the expectation that, when life goes wrong, your insurance company will do the right thing. But too often, claimants face unjust delays, unexplained denials, or pressure to accept lowball settlements. When an insurer puts profits ahead of its duty to its policyholders, it may be acting in bad faith—and that opens the door to legal action.

At Congruence Law, we represent individuals and businesses who’ve been mistreated by their insurers. Whether the issue involves a personal injury claim, property damage, medical bills, or liability coverage, we help clients assert their rights under the policy and under the law.

What Is Insurance Bad Faith?

Insurance companies are required to act in good faith and fair dealing with their policyholders. This means evaluating claims honestly, paying valid claims promptly, and communicating clearly. When an insurer violates this duty—whether intentionally or negligently—they may be liable for bad faith.

Examples of bad faith conduct include:

• Wrongful denial of a valid claim without proper explanation

• Unreasonable delay in investigating or paying a claim

• Failing to conduct a thorough and timely investigation

• Lowball settlement offers that don’t reflect the true value of the loss

• Misrepresentation of policy terms or coverage limits

• Refusing to defend or indemnify a policyholder without justification

• Delaying payment to pressure the policyholder into settling for less

Common Types of Claims Where Bad Faith Arises

While bad faith can occur in any insurance context, it most commonly arises in:

• Auto insurance (UM/UIM, bodily injury, or property claims)

• Homeowners or renters insurance (fire, water, theft, structural damage)

• Health insurance (coverage denials or procedural delays)

• Disability insurance (refusal to acknowledge qualifying disability)

• Liability or business insurance (refusal to defend lawsuits or pay judgments)

How Congruence Law, P.C. Approaches Insurance Bad Faith Cases

We don’t just fight for payment—we hold insurers accountable for how they treat their policyholders. Our approach includes:

1. Comprehensive Policy ReviewWe analyze every relevant clause, endorsement, and exclusion to determine exactly what the insurer owes—and whether their stated reasons for denial hold up.

2. Timeline and Conduct AnalysisWe document the insurer’s handling of the claim from day one. Delays, incomplete investigations, or inconsistent communication can be powerful evidence of bad faith.

3. Strategic Use of DiscoveryWe use litigation tools to uncover internal communications, claim-handling guidelines, and prior complaints that may show a pattern of unfair treatment.

4. Damages Beyond the Claim ItselfIn many jurisdictions, a successful bad faith claim allows recovery not just for the original loss, but for emotional distress, legal fees, and sometimes punitive damages designed to punish egregious behavior.

Common Pitfalls to Avoid

1. Assuming the Insurer’s Word Is Final. Just because your insurer denies a claim doesn’t mean they’re right—or acting lawfully. Always get a second opinion.

2. Not Keeping Detailed Records. Save copies of every communication, claim form, photo, estimate, and denial letter. These can become critical in a bad faith case.

3. Failing to Request a Clear Explanation. You have the right to know why your claim was denied. A vague or shifting explanation is often a red flag.

4. Waiting Too Long to Challenge a Denial. There are time limits for suing over breach of contract or bad faith. Acting promptly can protect your rights.

5. Accepting a Quick Settlement Without Legal Review. Once you sign a release, you may lose the ability to bring a bad faith claim—even if new facts come to light.

Why Choose Congruence Law

We believe that trust and accountability are the foundation of every insurance relationship. When that trust is broken, we step in to help our clients enforce their rights, recover what they’re owed, and send a message that bad faith will not go unchecked.

If you suspect your insurance company is acting in bad faith, contact us at injury@congruencelaw.com.

We’ll review your claim, your policy, and your options—and help you hold the insurer accountable.