Insurance bad faith continues to be an area of significant concern for the insurance industry. Over the past several years, many jurisdictions have expanded the scope of an insurer’s potential liability for bad faith damages. These developments include the erosion of attorney-client privilege protections, dilution of standards for imposing bad faith liability, increases in institutional bad faith claims, and the broadening of the size and scope of punitive damage awards.

Claims professionals must be increasingly vigilant when it comes to handling insurance claims, starting from the acknowledgement of a claim through to the claim’s resolution. This article will provide practical advice on avoiding bad faith with good faith practices.

It has been quite the turbulent ride for catastrophe insurance providers in the past few years. The US has suffered a series of devastating hurricanes, kicking off on August 25, 2017, when Hurricane Harvey made landfall in Texas as a Category 4 storm.