Bad Faith Insurance

“Bad faith insurance” is a legal term that describes a tort claim (basically, a tort claim is an act committed by one person that causes harm to another) that an insured person may have against an insurance company for its bad acts. 

According to law, insurance companies owe a duty of good faith and fair dealing to the persons they insure. If an insurance company violates that agreement, the insured person (or “policyholder”) may sue the company on a tort claim in addition to a standard breach of contract claim.