Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
Refine your search by selecting a city.
Bad faith insurance occurs when an insurance company unreasonably refuses to pay a valid claim, delays payment, or fails to properly investigate a policyholder’s claim. In New York, insurers are obligated by law to act in good faith and deal fairly with policyholders. If they violate these obligations, their actions may constitute bad faith. However, the legal landscape in New York surrounding bad faith claims is unique in comparison to many other states, and not every unfair denial will amount to a successful bad faith claim. Understanding your rights and the steps involved is critical when dealing with potential bad faith by your insurer.
Insurance policies can be complex documents filled with technical terms and conditions. If your insurer refuses to pay your claim or offers a settlement far below what you believe is owed, you may feel overwhelmed or unsure of your rights. Common situations where legal help is needed include:
A lawyer experienced in insurance law can evaluate your policy, determine if the insurer’s actions constitute bad faith under New York law, and help you take appropriate steps to protect your interests.
In New York, the legal landscape for bad faith insurance is shaped by both statutes and court decisions. The key points include:
Due to these complexities, pursuing a bad faith claim in New York requires a nuanced approach and skilled legal counsel.
Bad faith generally refers to unfair or dishonest practices by an insurer, such as unjustified delays, inadequate investigations, lowball offers, or wrongful denial of benefits. In New York, to succeed in a bad faith claim, you typically need to prove more than just a simple breach of contract.
New York law does not provide a standalone cause of action for bad faith. However, you may be able to sue for breach of contract and, in extreme cases involving a pattern of egregious behavior, seek punitive damages. Legal counsel can advise on the viability of your case.
You can usually recover what you are owed under the policy, plus sometimes interest and legal fees. Punitive damages are rarely awarded and only in situations involving especially wrongful conduct by the insurer.
You should not accept a settlement offer without understanding your full rights and the actual value of your claim. An insurance lawyer can review your offer and advise whether it fairly compensates you.
You must show that the insurer’s actions went beyond a simple mistake or contract error - typically by documenting misconduct, repeated delays, lack of investigation, or unreasonable denial of a valid claim.
Request a written explanation for the denial, gather all documents and correspondence, and consult a lawyer to review your claim and insurer’s actions for potential bad faith.
The timeframe depends on your policy’s terms and the nature of your claim. For breach of contract, the statute of limitations is generally six years, but some policies have shorter deadlines for suits. Review your policy carefully and act promptly.
Yes, filing a complaint can trigger an investigation and potentially resolve your dispute with the insurer, though it does not guarantee compensation. This step is often helpful before or alongside legal action.
Insurers cannot cancel your policy solely for filing a claim or complaint. Retaliatory cancellations are prohibited under New York law.
Costs vary, but many lawyers in this field work on a contingency fee basis, meaning you pay only if you win or settle your case. Initial consultations are often free.
If you believe your insurance company is acting in bad faith, start by carefully reviewing your policy and documenting all communications and actions from your insurer. Consider contacting the New York State Department of Financial Services for guidance or to file a formal complaint. If your issue remains unresolved, consult with an attorney who is experienced in insurance law and bad faith matters in New York. They can evaluate your situation, explain your options, and help you pursue the compensation you deserve. Remember, acting promptly can protect your legal rights and improve the chances of a successful resolution.
