Bad-faith insurance claims can expose companies to significant financial liability, as well as reputational damage, particularly in a plaintiff-friendly state like Illinois. When policyholders allege that an insurer wrongfully denied a claim, delayed payment without justification, or failed to conduct a proper investigation, the stakes are high.
Not every dispute, however, amounts to a bad-faith insurance claim. Illinois sets a fairly high standard for proving such claims, and insurance companies have robust legal defenses available. Consulting with a Rock Island County, IL insurance defense attorney can help determine the most effective defense possible, given the specific circumstances.
What is a Bad Faith Insurance Claim in Illinois?
Bad faith, in the context of an insurance claim, usually refers to the dishonest or unfair handling of an insurance claim by the insurer. Bad faith goes beyond negligence or a mistake, involving a failure to act fairly and honestly, and, under 215 ILCS 5/155, can include: