Refusal to Defend or Pay

If your insurance company fails to provide a defense for you or fails to indemnify you against a claim, lawsuit or verdict, you have the potential for a bad faith or insurance malpractice claim. This situation might arise if you were involved in an automobile accident that you caused as a result of your own negligence and your insurance company failed to defend you. Or, instead, if your insurance company made an offer to settle the case against you for an unreasonably low amount and a jury returned a verdict in excess of your insurance coverage. You would then be personally liable for the verdict reached by the jury above your insurance coverage. By law, it is your insurance company’s duty to protect you. If they fail to do so, they have breached their contract with you and it is your right to hold them responsible for any damage they may have caused you.