Insurance Bad Faith
Insurance companies are in the business of making money. The two primary ways insurance companies make money are: (1) collecting premiums from policyholders and (2) investing those premiums and collecting returns on investments.
The longer premiums are in the market, the more money insurance companies make. Ultimately, the goal of the insurance company is to ensure that their income from premiums and investments exceeds the cost of claims and operations. One way to ensure continued profits is to delay, deny, and defend claims.
Under Louisiana law, insurance companies have a legal duty to treat policyholders and claimants fairly. When they delay, underpay, or deny valid claims without cause, that's not just wrong—it may be bad faith, which is against the law in Louisiana.
Bateman McDonald Law Firm doesn't just fight the underlying injury case—we fight the insurance company when they refuse to honor their obligations.
Louisiana Insurance Bad Faith Lawyer |
Baton Rouge Insurance Dispute Attorney
We have the experience, resources, and trial record to hold insurers accountable for bad faith conduct.
In 2025, Bateman McDonald Law Firm obtained a jury verdict in excess of $1,300,000 against a national insurance company for bad faith claims handling practices.
What is Insurance Bad Faith in Louisiana?
Bad faith occurs when an insurance company acts unreasonably or dishonestly in handling a claim. Under Louisiana law, insurers must act promptly, fairly, and in good faith when evaluating and paying claims. When they don't, you may be entitled to more than just your original damages.
Common Examples of Insurance Bad Faith:
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Unreasonable denial of a valid claim
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Delays in payment without justification
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Failure to conduct a proper investigation
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Refusing to settle a claim within policy limits
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Misrepresenting coverage or policy terms
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Failing to keep the policyholder informed of claim status
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Exposing the policyholder to an excess judgment
Bateman McDonald Law Firm has a deep understanding of insurance claims and will handle every aspect of your claim, from initial filing to aggressive litigation, settlement negotiations, and trial if necessary. We aren't afraid of big insurance companies and will fight with our utmost ability to receive full justice on your behalf.
Louisiana Insurance Bad Faith Penalties
Under Louisiana Revised Statute § 22:1892, insurance companies that engage in bad faith practices may be liable for:
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50% of the amount owed (or $5,000, whichever is greater)
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Proven economic damages
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Reasonable attorney's fees and court costs
These penalties are designed to punish dishonest insurance practices and deter future misconduct.
What Happens After an Accident?
Step 1: Notification of the Insurer
Report the accident to the at-fault party's insurance company as soon as possible. Notifying your own insurance provider may be necessary if you are attempting to file an insurance claim under underinsured/uninsured motorist coverage.
Step 2: Investigation by Insurance Adjusters
Insurance adjusters will begin their investigation including reviewing accident reports, inspecting damaged property or vehicles, taking recorded statements, analyzing medical records, and interviewing witnesses.
It is important to remember that an adjuster's job is to minimize payouts to victims. Consult an attorney before sharing information about your accident.
Step 3: Evaluation of the Claim
The insurance adjusters will offer a settlement based on their evaluation of damages. However, this initial settlement often does not include damages for future medical costs, pain and suffering, or long-term income loss.
Step 4: Settlement Negotiation or Lawsuit
If a reasonable and fair settlement offer cannot be reached, your attorney may file a lawsuit to further pursue compensation in court.
Most Common Types of Louisiana Insurance Claims
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Auto accidents – liability/bodily injury, underinsured/uninsured motorists, property damage
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Truck accidents and commercial vehicle claims
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Homeowners insurance claims – slip and falls, dog bites, negligent maintenance
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Workers' compensation claims
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Hurricane/storm damage claims – wind, flood, and property loss; business interruption; bad faith denial of legitimate property damage claims
Common Mistakes to Avoid When Making an Insurance Claim
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Giving a recorded statement without counsel – Insurance companies may try to use your words against you later, so always consult an attorney first
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Accepting the first settlement offer – Early settlement offers pressure victims into accepting less than they deserve and fail to account for future care, lost earning potential, and pain and suffering
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Delaying medical treatment – Insurance companies often use deferred medical treatment as an excuse to minimize or deny claims
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Posting on social media – Even harmless social media posts can be used against you to dispute your insurance claim