New Orleans Bad Faith Insurance Attorneys

What Is Insurance Bad Faith?

Any time two or more individuals or entities sign a contract, all parties are agreeing to treat each other honestly, fairly, and in good faith. This is called the implied covenant of good faith and fair dealing, and violating it constitutes bad faith.

Some ways that insurance companies act in bad faith include:

• Misrepresenting insurance policies
• Intentionally misinterpreting language within policies
• Failing to acknowledge a claim
• Declining to conduct a thorough investigation
• Causing unnecessary delays
• Making arbitrary demands regarding proof of loss
• Refusing to approve or deny claims within a reasonable period
• Denying a claim without reason or explanation
• Undervaluing a claim without explaining why
• Using manipulation, bullying, and other abusive tactics

Most bad faith claims are filed under common law, so plaintiffs must prove that their policy benefits were withheld and that they were withheld without a valid reason. Some states, like Louisiana, have special statutes to protect policyholders for insurance bad faith. Due to Hurricane Katrina, for example, Louisiana’s bad faith statutes were amended to include stiffer penalties and sanctions against insurance carriers who mistreat their customers.

Under Louisiana’s bad faith statutes, your insurance company should be responsible for all attorneys’ fees.