The bargain you strike with an insurer is simple: you pay premiums, and they handle covered claims fairly. When the insurer fails its end of the bargain, Delaware law generally provides a remedy known as bad faith.
The Detailed Answer
The Implied Covenant
Every insurance contract in Delaware carries an implied covenant of good faith and fair dealing. Bad faith claims most commonly arise in first-party situations — your own carrier handling your PIP, UM/UIM, or property claim.
Statutory Unfair Claims Practices
Under 18 Del. C. § 2304, Delaware identifies a list of unfair claims practices, including misrepresenting policy provisions, failing to acknowledge communications promptly, failing to conduct reasonable investigations, and refusing to pay without conducting a reasonable investigation.
Examples of Possible Bad Faith
- Denying a clearly covered claim without investigation.
- Lowballing a claim with no factual basis.
- Delaying payment for unjustified reasons.
- Misrepresenting coverage provisions.
- Failing to settle a third-party claim within policy limits when liability is clear and the carrier’s insured is exposed.
Damages
Bad faith damages may include the amount that should have been paid, consequential damages, and in some cases additional damages and attorney fees. Damages may exceed the policy limit because the claim sounds in tort and contract beyond simple breach.
What This Means for Your Case
Not every denial is bad faith. The standard requires unreasonable conduct without a fairly debatable basis. Joseph M. Jachetti’s experience handling claims from inside the insurance industry helps the firm distinguish ordinary disputes from genuine bad faith.
Related Questions
Q: What if my claim is denied?
See denied claims.
Q: Can I sue my own insurer?
For bad faith, generally yes. The bad faith claim is against the carrier, not the at-fault driver.
Q: What is the deadline?
Statutes of limitation may vary. Talk to a lawyer promptly.
When to Talk to a Delaware Personal Injury Lawyer
If your insurer is mishandling your claim, the Delaware team at Schuster Jachetti LLP may be able to evaluate a bad faith claim. Learn about Joseph M. Jachetti.
Free Consultation
Free consultation. No fee unless we recover compensation for you.
📞 Call (302) 984-1000
This page provides general legal information only. It is not legal advice and does not create an attorney-client relationship. For advice on your specific situation, contact Schuster Jachetti LLP.
Have a Question About Your Case?
Get a free, confidential consultation with a Delaware attorney.
📞 Call (302) 984-1000
This page provides general legal information only. It is not legal advice and does not create an attorney-client relationship. For advice on your specific situation, contact Schuster Jachetti LLP.