We are personal injury attorneys who have achieved results for our clients in Joplin for over 40 years.
When you buy insurance, you expect fair treatment. However, not all insurance companies follow the rules. At Buchanan, Williams & O’Brien, we understand that policyholders rely on insurers to keep their promises during difficult times.
Unfortunately, some insurers deny valid claims, delay payments, or pressure policyholders unfairly, leaving families in challenging situations when they need help most.
We can help you identify when an insurer acts in “bad faith.” This guide explains what bad faith means, the tactics insurers often use, the legal consequences they may face, and the steps you can take to protect your rights and hold them accountable.
What Bad Faith Insurance Means
Insurance contracts in Missouri, like in the rest of the U.S., require policyholders and insurers to act in good faith and deal fairly with one another. This means insurers must handle claims honestly, investigate thoroughly and promptly, offer fair settlements, and provide clear reasons for any claim denials or delays.
Bad faith occurs when an insurance company fails to meet these obligations unreasonably or dishonestly, breaking the trust established by the policy. Missouri law, specifically RSMo § 375.296, allows policyholders to take legal action against insurers who delay, deny, or underpay legitimate claims without justification.
Common examples of bad faith include:
- Failing to investigate or process claims within a reasonable time
- Misrepresenting policy terms or exclusions
- Offering settlement amounts far below the actual value of a claim
- Withholding payments without valid reasons
- Refusing to explain why they denied a claim
- Using deceptive, abusive, or coercive tactics during claims handling
In Missouri, insurance companies also must defend policyholders under liability policies. Failure to defend against covered third-party claims without good cause is another form of bad faith.
When an insurer acts in bad faith, it can cause severe financial and emotional harm to the policyholder. Missouri law allows victims of bad faith to recover the benefits owed under the policy and additional damages, including punitive damages. These extra damages serve to punish the insurer and prevent future misconduct.
At Buchanan, Williams & O’Brien, we understand insurers’ strategies to avoid their responsibilities. We know how to hold them accountable. Contact our insurance claim attorneys today if your insurer acts in bad faith. We’ll help you understand your rights and fight to get you the compensation you deserve.
Common Examples of Bad Faith Insurance Claims
Bad faith happens when insurers use dishonest or unreasonable tactics to avoid paying valid claims. It is not about simple mistakes—it’s about actions that intentionally harm policyholders. Here are some examples you need to know:
Denying Valid Claims
One of the clearest examples of bad faith is when an insurer denies a claim that falls within the policy’s coverage. Missouri law (RSMo § 375.420) protects policyholders from insurers who:
- Deny claims without conducting a proper investigation
- Misinterpret or misapply policy language to avoid payment
- Ignore strong evidence that supports the claim
- Use unreasonable interpretations of policy exclusions
For example, we represented a Missouri homeowner whose roof was severely damaged during a storm. An independent adjuster confirmed the storm caused the damage, but the insurer denied the claim, citing a “wear and tear” exclusion.
Failing to Investigate Claims Properly
Insurers in Missouri must conduct reasonable, thorough, and timely investigations before deciding on a claim. Bad faith occurs when insurers:
- Delay opening or completing investigations
- Conduct biased or incomplete reviews
- Overlook key evidence, expert opinions, or witness statements
- Refuse to consult the necessary professionals
In one case, we helped a family whose wrongful death claim stalled because the liable driver’s insurance company delayed the investigation for months. The insurer ignored eyewitness accounts and failed to inspect the accident scene.
Unjustified Payment Delays
Even when an insurer acknowledges coverage, it may delay payments and pressure policyholders into accepting lower settlements. These bad faith tactics include:
- Requesting excessive or unnecessary paperwork
- Claiming they “lost” documents or communications
- Offering unfairly low payouts to force a quick resolution
- Failing to provide updates or explanations for delays
We worked with a Missouri business owner whose commercial property was destroyed by fire. Although the insurer admitted liability, it delayed payments for months, threatening the business’s survival. We filed a bad faith claim and obtained the full insurance payout and additional damages for the delay.
Other Bad Faith Tactics
Insurers may also engage in other deceptive practices, such as:
- Misrepresenting or concealing policy benefits or limits
- Failing to disclose policy provisions that support your claim
- Pressuring or intimidating you into unfair settlements
- Retaliating against you for exercising your legal rights
At Buchanan, Williams & O’Brien, we have extensive experience fighting insurance companies’ bad faith practices. Whether you are a homeowner, business owner, or accident victim, you don’t have to face powerful insurers alone.
The Consequences of Bad Faith Insurance Practices
When an insurance company in Missouri acts in bad faith, it harms policyholders and exposes itself to significant legal, financial, and reputational risks. Bad faith occurs when an insurer deliberately violates its duty to act in good faith and deal fairly with policyholders. Missouri law imposes serious consequences to compensate victims and prevent future misconduct. Here’s what insurance companies may face:
- Compensatory Damages: Under Missouri Revised Statutes § 375.420, insurers found guilty of bad faith must pay more than the original claim amount. They are also responsible for damages caused by wrongful denial or delay, including attorney fees, court costs, and interest on overdue payments.
- Punitive Damages: Courts can award punitive damages if the insurer’s actions are harmful or intentional. These damages punish the insurer and send a strong message that bad faith will not be tolerated. Punitive awards often exceed compensatory damages and can be significant.
- Statutory Penalties: Missouri law allows for extra penalties when an insurer refuses to pay a claim without a valid reason. Under RSMo § 375.296 and related laws, policyholders can recover additional damages, including up to 20% of the policy amount and reasonable attorney fees.
- Breach of Contract Claims: Bad faith claims often accompany breach of contract claims. While bad-faith focuses on the insurer’s misconduct, breach of contract concerns failing to honor the policy’s terms. Together, these claims can increase the insurer’s liability and raise the compensation owed to the policyholder.
If you believe your insurer is acting in bad faith, you have the right to hold them accountable. Legal action protects your rights and helps ensure fairness and accountability in the insurance system. We are here to help you fight for the justice you deserve.
How to Handle a Bad Faith Insurance Claim
If you suspect you’re dealing with an insurer acting in bad faith, our team wants to help you regain control of the process. While you focus on your overall well-being, we apply our legal experience to hold your insurer accountable. Below are practical steps to strengthen your position if you believe you’re a victim of bad faith:
- Document Everything: Keep records of all communications, including phone calls, emails, and letters. Make notes of dates, times, and discussion details. These records can be indispensable if you need to pursue litigation.
- Gather Evidence: Collect supporting materials like medical reports, photos of property damage, and witness statements. The more thoroughly you can demonstrate your claim’s legitimacy, the harder it is for the insurance company to deny a proper payout.
- Review Your Policy: Carefully read your insurance contract to understand your coverage. Don’t hesitate to ask questions or request clarification on any confusing terms.
- File a Formal Complaint: Submit a written complaint to your insurer specifying why you believe it is acting in bad faith. This step creates an official paper trail that helps you if further legal action is required.
- Consult with an Attorney: Speaking with a lawyer experienced in bad faith insurance claims can be a game-changer. At Buchanan, Williams & O’Brien, we know the complexities of insurance law and can offer strategic guidance on how to best proceed.
Remember, insurance companies have vast resources; their primary objective is to protect their bottom line. You deserve an equally strong ally on your side. That’s why we’re here. With over four decades of experience, we’ve seen virtually every tactic insurers use to minimize or deny claims, and we know how to fight back.
Contact Buchanan, Williams & O’Brien for Support
If your insurance company isn’t treating you fairly, you don’t have to handle it alone. Buchanan, Williams & O’Brien has over 40 years of experience holding insurance companies accountable and helping clients get the compensation they deserve.
We handle delayed payments, low settlement offers, and wrongful claim denials so you can focus on your recovery instead of the legal process.
If you think your insurer is acting unfairly, contact us for a free initial consultation. We’ll review your case, explain your options, and guide you through the process.
At Buchanan, Williams & O’Brien, we fight for your rights because you deserve fair treatment.
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