Panelists Urge Carriers To Avoid 'Reverse Bad Faith' Claims

Law360 Insurance Authority

Insurers locked in a coverage fight with a policyholder should refrain from asserting a "reverse bad faith" claim, a panel of attorneys said in a webinar Tuesday, explaining that a vast majority of courts do not recognize it as a viable cause of action. 


Mark Garbowski of Anderson Kill PC said one reason courts may reject reverse bad faith claims stems from the time discrepancy that favors an insurer from the time it issues a policy until the time a claim is filed. Jurists may also believe that insurers have a higher duty to a policyholder after receiving a claim. 

Garbowski went on to say that while an insurer's use of a reverse bad faith claim is a way to intimidate policyholders, it does not give insurers carte blanche to engage in conduct that sets up a bad faith claim. 


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Insurance Recovery Attorney | Anderson Kill P.C.
Mark Garbowski
New York

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