Bad Faith Insurance
Insurers acting dishonestly — lowballing, stalling, or denying valid claims without a reasonable basis.
Free Case ReviewInsurance companies owe their policyholders a duty of good faith and fair dealing. When an insurer ignores that duty — lowballing a clearly valid claim, dragging out the process to pressure a quick settlement, or denying coverage without a reasonable basis — that’s bad faith. And under Louisiana, Alabama, and Georgia law, a policyholder may be entitled to far more than just the original claim amount.
What Counts as Bad Faith
Bad faith isn’t simply being unhappy with a settlement offer. It’s a pattern of unreasonable conduct by the insurer. Examples include:
- Denying a claim without conducting any meaningful investigation
- Misrepresenting policy provisions to discourage a claim
- Refusing to communicate or respond within statutory deadlines
- Forcing the insured to file suit to get policy benefits clearly owed
- Offering a fraction of the policy limits when full limits are owed
- Refusing to settle within policy limits when a reasonable insurer would
- Failing to defend or indemnify when the duty is clear
Louisiana’s Strong Bad Faith Statute
Louisiana law provides some of the strongest protections for policyholders in the country. Under La. R.S. 22:1973 and 22:1892, an insurer that acts arbitrarily, capriciously, or without probable cause can be liable for penalties of up to two times the damages and attorney’s fees. Alabama and Georgia have their own bad faith and Unfair Claims Settlement Practices laws as well, with overlapping but distinct rules.
Why These Cases Are Different
Bad faith claims require careful documentation of the insurer’s conduct — every letter, every recorded call, every missed deadline. The case isn’t just about the original loss; it’s about how the company behaved after the loss. That’s why we open a parallel file on the insurance company’s handling from day one of every disputed claim.
Talk to a Bad Faith Insurance Attorney
If your insurer is treating you unreasonably, call 504-269-3870 for a free, confidential consultation. Learn more about how we handle these cases on our Insurance Disputes page.