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ARTICLE · 10 NOVEMBER 2020

The Latest In Insurance Bad Faith Claims

Miller Thomson
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A bad faith claim against an insurer may result in liability beyond the policy limit. Where a plaintiff establishes that its insurer has responded to a claim in a manner that is offensive, reprehensible, or high-handed.

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A bad faith claim against an insurer may result in liability beyond the policy limit. Where a plaintiff establishes that its insurer has responded to a claim in a manner that is offensive, reprehensible, or high-handed, the insurer may be exposed to punitive damages, aggravated damages, or payment of a third-party judgment in excess of the policy limit.1

Three recent appellate decisions have addressed various aspects of bad faith claims. These decisions provide commentary on: (a) conduct that rises to the level of bad faith, (b) disclosure required by an insurer faced with a bad faith claim, and (c) the availability of substantial indemnity costs against an unsuccessful plaintiff.

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