Insurance Bad Faith

Insurance is a contract. The insurer agreed to a defined set of obligations in exchange for the premiums. When a valid claim is denied without a reasonable basis, when a claim is delayed past the point of reason, when a settlement offer is unreasonably low relative to the documented loss, or when the insurer fails to investigate a claim in good faith, the conduct is not just bad service. In Georgia, it can be bad faith, and the remedies go beyond the original policy benefits to include additional damages and attorneys’ fees.

The bad faith standard in Georgia is specific. The insured must make a proper demand, the insurer must refuse to pay, and the refusal must have been without reasonable grounds. When those elements are met, the insured can recover the full policy amount plus a penalty of up to fifty percent of the policy, plus attorneys’ fees. The combination is meaningful, and it changes how a denied claim should be approached from the start.

Transcendens handles insurance bad faith cases for Georgia consumers and families against carriers across lines: homeowners, auto, life, disability, and commercial policies where the insured is a small business or its owner. The work starts with the policy, the claim file, the denial letter, and any communications. The strongest cases are documented before a claim is denied, not after. But cases brought after denial are often resolved on the demand letter, when the carrier sees that the file supports the bad faith elements.