Insurance Bad Faith
Holding insurance companies accountable when they wrongfully deny, delay, or underpay valid claims.
Do not sign any release or accept any settlement without an attorney's review. Once signed, your rights are usually waived.
Insurance companies have a legal duty to treat their policyholders fairly. When they fail that duty — denying valid claims without reasonable basis, delaying payment unnecessarily, making lowball settlement offers, or conducting sham investigations — Wisconsin law allows policyholders to recover not just the benefits owed, but additional damages for the insurer's bad faith conduct.
At Smith & Associates, we represent policyholders in bad faith disputes involving auto insurance, homeowners insurance, commercial property and business interruption coverage, disability insurance, life insurance, and health insurance. We have pursued both first-party bad faith claims (where the insurer wronged its own policyholder) and third-party bad faith claims (where the insurer failed to defend or settle within policy limits against a third-party claim).
Wisconsin recognized the tort of bad faith in Anderson v. Continental Insurance Co., 85 Wis. 2d 675 (1978), allowing recovery of policy benefits, consequential damages, and — in proper cases — punitive damages. We are willing to take insurance companies to trial when necessary to enforce these rights.
Related Practice Areas
State law summary
Wisconsin recognizes a common-law cause of action for first-party insurance bad faith, originally adopted in Anderson v. Continental Insurance Co., 85 Wis. 2d 675 (1978). Statutory regulation of insurer conduct is found in Wis. Stat. Ch. 628.
Key statutes
Unfair insurance practices Wis. Stat. § 628.34
Prohibits unfair trade practices by insurers; administrative enforcement by the Office of the Commissioner of Insurance.
Common-law bad faith Anderson v. Continental Insurance Co., 85 Wis. 2d 675 (1978)
First-party bad faith is an intentional tort separate from breach of contract; available when insurer lacks a reasonable basis for denying benefits and knows or recklessly disregards that fact.
Source: State_Legal_Data (verified per file). This summary is for general information only and is not legal advice.
Insurance Bad Faith FAQ
Answers to common questions about this area of law.
Frequently Asked Questions
Ready to Discuss Your Case?
Schedule your free, confidential consultation today.
Most consultations scheduled within 24 hours.
Ready to Discuss Your Case?
Call (414) 555-0142 or schedule a consultation online.