Understanding Bad Faith
Bad faith occurs when a party to a contract acts unreasonably or dishonestly. Most commonly applied to:
- Insurance claim denials or delays
- Unreasonable lowball settlement offers
- Failure to investigate claims properly
- Misrepresenting policy coverage
- Forcing litigation unnecessarily
Elements You Must Prove
- A contract exists (often an insurance policy)
- Benefits were due under the contract
- The defendant unreasonably denied or delayed benefits
- The defendant knew or should have known benefits were owed
Available Remedies
- Contract benefits owed
- Consequential damages
- Emotional distress damages (in some states)
- Punitive damages (for egregious conduct)
- Attorney's fees (in most bad faith cases)
Tips for Your Demand Letter
Document the timeline of your claim, all communications, and the specific unreasonable actions. Reference your state's insurance bad faith statute if applicable.
Questions About Bad Faith Demand Letters
What is bad faith?
Write a demand letter for insurance bad faith or contract bad faith. When the other party acts unreasonably or dishonestly, additional remedies may apply.
What must I prove in a bad faith claim?
To succeed in a bad faith claim, you must prove: A contract exists (often an insurance policy); Benefits were due under the contract; The defendant unreasonably denied or delayed benefits; The defendant knew or should have known benefits were owed.
What can I recover?
Available remedies include: Contract benefits owed, Consequential damages, Emotional distress damages (in some states), Punitive damages (for egregious conduct), Attorney's fees (in most bad faith cases).
Generate Your Demand Letter
Create a professional bad faith demand letter. Our free tool helps you include the right elements and legal language.
Generate Your Demand Letter Now