An insurance company may violate the terms of its own policies for any number of reasons. Whether it was the result of a processing error or of someone’s conscious decision to deny an otherwise valid claim, the tort remains the same: The insured party has grounds to sue.
There is a steep burden of proof to pursue an insurance bad faith claim. The evidence must be convincing in nature, and the plaintiff must prove that there is conscious wrongdoing on behalf of the insurer.