What Does It Mean for an Insurance Company to Have Good Faith?

An insurance company has what’s called an
obligation of good faith. They have an obligation to protect their insured,
the person that paid and bought insurance with them, and to protect them from any excess
exposure. Any excess judgement. For example, if you buy a hundred-thousand-dollar
policy but you caused over a hundred thousand dollars of damage, their obligation is to,
as soon as they have the right information, to pay that hundred thousand dollars in good
faith and protect their insured. When they don’t do that, then they’re
in bad faith and then we’re specialists and holding them to that good faith standard.

Because if they don’t act in good faith
towards their insured. Then they could potentially be on the hook
for the full value of the damages, no matter what the policy limits provides. I think that the insurance industry is very
good at promoting themselves and making it seem like they’re trying to protect their
insureds. But when you talk about catastrophic injuries
and damages, because it’s a big business, they don’t always act in good faith towards
their insureds. My name is Joe Kalbac. If you need more information, please call
me at area code 305-476-7400. Or call our firm Colson Hicks Eidson at the
same number. Or feel free to visit our website at Colson.com..