A bad faith lawsuit can be brought when an insurer unreasonably denies or delays the payment of valid claims under a policy, breaching the implied covenant of good faith and fair dealing. Suing an insurance company for bad faith presents a range of legal and procedural obstacles, as insurers are well-resourced and advised by experienced counsel. Policyholders must not only prove entitlement to benefits but also that the insurer’s conduct was unreasonable or malicious.
