You pay premiums expecting your insurer to honor valid claims. When a company unreasonably refuses, delays, or underpays what it owes, it may cross from hard bargaining into bad faith — and Nebraska law takes that seriously.
The Duty of Good Faith
Insurers owe their policyholders a duty of good faith and fair dealing. That means investigating claims reasonably, communicating honestly, and paying valid claims without undue delay.
When a company ignores that duty to protect its own bottom line, it may be liable beyond the original claim amount.
What Bad Faith Looks Like
Red flags include unreasonable denial of a clearly valid claim, failure to investigate, misrepresenting policy terms, unexplained delays, and lowball offers untethered to the facts.
A single frustrating interaction isn't necessarily bad faith, but a pattern of unreasonable conduct may be.
Proving an Insurer Acted Unreasonably
Bad faith claims require showing the insurer lacked a reasonable basis for its conduct and knew or recklessly disregarded that. Documentation of the claim history is central.
Keeping records of every communication, offer, and delay builds the case if an insurer's behavior crosses the line.
Your Options
When an insurer acts in bad faith, you may be able to recover not only the original benefits but additional damages flowing from the misconduct.
If you suspect your insurer is treating you unfairly, a free review can help assess whether the conduct rises to bad faith and what to do about it.
Talk to a Nebraska Injury Specialist — Free
Every case is different. The fastest way to understand yours is a free, no-obligation review. Call 973-566-5599 or request a review online.
Get My Free Case ReviewThis article is for general information about Nebraska law and does not constitute legal advice. Injury Claim Team is not a law firm; we connect injured Nebraskans with independent personal injury attorneys. For advice about your specific situation, consult a licensed Nebraska attorney.