An example of bad faith insurance practices is when the insurance company makes a low-ball settlement offer regardless of the facts of your case. Insurance companies that operate on a deny first, defend later policy may also be vulnerable to an insurance bad faith lawsuit. A deny first, defend later strategy means they will often send out denials or low settlement offers without thoroughly evaluating critical pieces of evidence in the claim. An attorney can protect you from the insurance company handling your claim in bad faith and help you hold the liable party accountable for your losses.