Can You Sue an Insurance Company For Bad Faith?

Yes, you can sue an insurance company for bad faith when they fail to uphold their legal duties. When you enter into an insurance contract, the law requires the insurance company to act in good faith when handling claims. As part of a bad faith claim, you may be entitled to recover the amount of your original claim plus additional damages.

Keep reading below to learn more about suing an insurance company for bad faith in Washington.

What Is Bad Faith Insurance?

Bad faith occurs when an insurance company fails to uphold its legal obligations to a policyholder. Put another way, bad faith occurs when the insurance company fails to treat you fairly, especially when they do so to protect their own financial interests.

There are many types of conduct that might be considered bad faith, but some of the most common examples include:

• Intentionally delaying the processing of your claim
• Failing to respond to communications in a timely manner
• Denying your claim without performing a reasonable investigation
• Denying your claim without a valid reason
• Intentionally undervaluing your claim by a substantial amount
• Delaying the payment of your claim even after it has been settled
• Misrepresenting the details of your coverage
• Changing your coverage or policy information after a claim has been filed

When an insurance company engages in this unfair behavior, Washington law gives the claimant the right to sue it.

What Types of Damages Are Available to Victims of Bad Faith Insurance?

Victims who are subjected to bad faith insurance may suffer many types of losses. First, they may be stuck with all the expenses stemming from their original claim.

For instance, imagine a victim is hurt in a car accident. They may be waiting on compensation from an insurance claim to pay their medical bills, car repair bills, and other expenses. These victims may be able to recover the amount of their original claim plus additional economic and non-economic damages.

Economic damages are the additional financial losses suffered by the victim, such as:

• Late fees
• Interest charges
• Damage to credit
• Counseling services
• Out-of-pocket expenses

Non-economic damages compensate victims for their physical and emotional pain and trauma. Bad faith victims are often subjected to extreme stress and emotional trauma.

Some common examples of non-economic damages include:

• Emotional distress
• Mental anguish
• Depression
• Anxiety
• Loss of reputation
• Diminished quality of life

Additional damages may be available in some bad-faith cases under Washington law. For example, certain claims may allow extra damages beyond the amount owed on the policy, and in some situations, a court may increase damages under specific statutes. The availability and amount of these added damages depend on the type of claim, the insurer’s conduct, and the evidence.

Identifying all the damages available in your case can be challenging. An experienced lawyer can help you put a proper value on your claim to ensure that you are maximizing your financial recovery.

How Long Do I Have to File a Lawsuit For Bad Faith in Washington?

The amount of time you have to file your claim depends on the specifics of your case. Some claims may have a deadline of three years, while others might allow you up to six years to file your claim. The Washington Consumer Protection Act and the Insurance Fair Conduct Act may govern your claim, but you can also file a claim based on the insurance contract itself.

Missing the deadline for your claim can cause you to lose all your rights to recover compensation. This is why it is best to seek help from an experienced lawyer as soon as possible. Your lawyer can determine the specific filing deadline for your claim to ensure that you do not miss your chance to recover compensation.

Contact the Seattle Bad Faith Insurance Lawyers at Davis Law Group Car Accident and Personal Injury Lawyers for Help Today

If you believe an insurance company has delayed, denied, or underpaid your claim without a valid reason, you may have the right to take legal action. Bad-faith cases can be complex, and insurers often fight hard to avoid paying what they owe. Getting legal help early can protect your rights and improve your chances of a fair outcome.

Davis Law Group Car Accident and Personal Injury Lawyers can review your policy, investigate the claim handling, and explain your options under Washington law. Contact us today to schedule a free consultation with an experienced Seattle bad faith insurance lawyer. Visit our law office at:

Davis Law Group Car Accident and Personal Injury Lawyers
2101 4th Ave 1030 Seattle, WA 98121
(206) 727-4000
Hours: Open 24/7