Coverage Disputes & Bad Faith Claims

Phelan Tucker Law LLP represents parties in insurance coverage disputes including allegations of bad faith. We have handled claims involving automobile, homeowners, life, health, business, and disability policies.

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Coverage Disputes & Bad Faith Claims SERVICES LEGAL TEAM

Jessica Tucker Glick

Jooyeon “Zoe” Lee

Hayley M. Masching

William N. Toomey

Conflicts can emerge whether the policy was in force at the time of the loss, whether the kind of loss is covered under the policy, and the amount of damages. In some cases, policies contain legally enforceable deadlines on the filing of a proof of loss (a notarized document that sets forth details about what happened and the amount of the losses) and when a lawsuit must be filed if there is no settlement; under some policy contracts, these deadlines can be very short. In certain circumstances, arbitration (including appraisal) is a mandatory or optional way to resolve disagreements using a neutral third party rather than a lawsuit.

Insurance disputes can involve first-party or third-party claims. Generally, the former is when an insured makes a claim under their own policy. In a third-party claim, a person or business makes a claim for damages caused by someone else. Generally, wrongful injury or death are third party claims. However, if an uninsured and underinsured motorist cause an injury, a first party claim may also be involved.

Allegations of bad faith can apply to first party claims. These cases generally have two issues. First, was the claim properly handled or wrongly denied? Second, if it was inappropriately denied, partially denied, or delayed, does it meet the legal definition of bad faith?

Bad faith claims in the third-party context can arise if the insurance company fails to properly protect or defend its insured from a lawsuit.