Insurance companies owe a duty of good faith and fair dealing to the people who they insure. This duty is often referred to as the "implied covenant of good faith and fair dealing," and it automatically exists by operation of law in every insurance contract. As a general rule, if an insurance provider violates the covenant of good faith and fair dealing, a policyholder may sue in tort in addition to bringing a standard breach of contract claim. Suing in tort is advantageous to a plaintiff because it allows him or her to collect punitive damages in addition to general and special damages for the provider's breach. For this reason, attorneys prefer to include a cause of action in tort for bad faith insurance practices whenever possible.
Most insurance companies process our claims lawfully; however, in the event they don't, we are prepared to move forward legally.