An obligation of good faith is an insurance company’s duty to protect all customers who purchased insurance with them from the damages agreed upon up to the policy limits. If an insurance company fails to investigate or respond to a policyholder or refuses to cover the insured, then it is acting in bad faith. In this video, attorney Joe Kalbac goes into detail about how to protect yourself when a company is engaging in insurance bad faith after an accident.
An insurance company has what’s called an obligation of good faith. They have an obligation to protect their insured, the person that paid and bought insurance with them, and to protect them from any excess exposure. Any excess judgement. For example, if you buy a hundred-thousand-dollar policy but you caused over a hundred thousand dollars of damage, their obligation is to, as soon as they have the right information, to pay that hundred thousand dollars in good faith and protect their insured. When they don’t do that, then they’re in bad faith and then we’re specialists at holding them to that good faith standard. Because if they don’t act in good faith towards their insured. Then they could potentially be on the hook for the full value of the damages, no matter what the policy limits provides. I think that the insurance industry is very good at promoting themselves and making it seem like they’re trying to protect their insureds. But when you talk about catastrophic injuries and damages, because it’s a big business, they don’t always act in good faith towards their insureds. My name is Joe Kalbac. If you need more information, please call me at area code 305-476-7400. Or call our firm Colson Hicks Eidson at the same number. Or feel free to visit our website at Colson.com.