What Damages Are Available When a Company Acts in Bad Faith?
When an insurance company acts in bad faith, you can recover the damages that result from the breach of contract. First, you can recover what the insurance company should have paid out under the policy. Next, you can receive compensation for the cost of your legal fees to bring the action to enforce the insurance policy.
It’s natural to have mental suffering and emotional distress when an insurance company unfairly denies a claim. You can recover for those damages too. Generally, punitive damages are available in cases where the insurance company’s refusal is part of a larger pattern of bad faith on the part of the insurer.