You paid your premiums on time. You filed a legitimate claim. And your insurance company responded by denying it, delaying it, or offering you far less than what your policy covers. If this sounds familiar, you may be the victim of insurance bad faith — and you have legal options.
What Is a Bad Faith Insurance Lawyer?
A bad faith insurance lawyer represents policyholders when their insurance company unreasonably denies, delays, or underpays a legitimate claim. Under state laws such as Pennsylvania’s 42 Pa. C.S. § 8371, New Jersey’s Insurance Fair Conduct Act (N.J.S.A. 17:29BB-1), Maryland Insurance Article §3-1701, and New York Insurance Law §2601, policyholders can sue their insurer for bad faith and recover compensatory damages, punitive damages, and attorney’s fees. Attorney Michael A. Siddons of Siddons Law Firm in Media, Pennsylvania represents policyholders across PA, NJ, MD, and NY in bad faith insurance litigation against carriers including State Farm, Allstate, GEICO, and Progressive.
At Siddons Law, attorney Michael A. Siddons, Esq. represents policyholders whose insurance companies have failed to honor their contractual and legal obligations. We hold insurers accountable across Pennsylvania, New Jersey, Maryland, and New York when they put profits ahead of the people they are supposed to protect.
Schedule a free consultation to discuss your denied or underpaid claim.
What Is Bad Faith Insurance?
Every insurance policy carries an implied duty of good faith and fair dealing. When an insurance company violates that duty — by unreasonably denying a valid claim, delaying payment without justification, or failing to properly investigate — it is acting in “bad faith.”
Bad faith is not simply a disagreement about coverage. It occurs when an insurer acts without a reasonable basis for its decision, or when it knows (or recklessly disregards) the fact that it has no reasonable basis for denying or underpaying your claim.
Insurance bad faith can involve any type of policy: homeowners insurance, auto insurance, disability insurance, commercial liability policies, and more. The common thread is an insurer prioritizing its own financial interests over its obligations to you, the policyholder.
Signs Your Insurance Company May Be Acting in Bad Faith
If you are experiencing any of the following, your insurer may be acting in bad faith:
- Unreasonable denial of a covered claim — Your claim falls squarely within your policy terms, but the insurer denies it without adequate explanation or based on a misrepresentation of your coverage.
- Excessive delays — The insurer takes weeks or months to process your claim, requests the same documents repeatedly, or fails to communicate about the status of your claim.
- Lowball settlement offers — The insurer offers far less than your claim is worth, hoping you will accept out of financial desperation rather than fight for what you are owed.
- Failure to investigate — The insurer makes a coverage determination without conducting a thorough, fair investigation of your claim.
- Misrepresentation of policy terms — The insurer tells you something is not covered when your policy clearly provides coverage, or misrepresents the terms of your policy to justify a denial.
- Threatening or intimidating conduct — The insurer pressures you to accept an inadequate settlement, threatens to cancel your policy, or retaliates against you for filing a claim.
- Refusing to provide a written denial — The insurer verbally denies or delays your claim but refuses to put the decision in writing, making it harder for you to challenge the decision.
If any of these situations describe your experience, contact us. You may have a viable bad faith claim that entitles you to damages well beyond your original policy benefits.
Your Rights Under the Law
Bad faith insurance law varies by state, and the legal framework in each jurisdiction affects what remedies are available to you. Siddons Law practices across four states, and we understand the nuances of each.
Pennsylvania
Pennsylvania offers the strongest statutory protection for policyholders in the region. Under 42 Pa. C.S. § 8371, if a court finds that an insurer acted in bad faith, it may award interest on the claim amount at the prime rate plus 3%, punitive damages, and attorney’s fees. You must prove bad faith by clear and convincing evidence, but you do not need to show the insurer acted with subjective ill will — reckless disregard of its obligations is sufficient.
Read our complete guide to Pennsylvania bad faith insurance law →
New Jersey
New Jersey’s Insurance Fair Conduct Act, effective January 2022, created a statutory right of action for policyholders with uninsured/underinsured motorist claims. Damages can reach up to three times the applicable coverage amount, plus attorney’s fees. The law continues to develop as courts address open questions about its scope and application.
Read our complete guide to New Jersey bad faith insurance law →
Maryland
Maryland provides a statutory cause of action for first-party bad faith claims on property and casualty policies. First-party damages are limited to policy limits with attorney’s fees capped at one-third of the recovery. Third-party claims allow for damages exceeding policy limits and, where the insurer acted with actual malice, punitive damages.
Read our complete guide to Maryland bad faith insurance law →
New York
New York does not have a comprehensive bad faith insurance statute, making it the most challenging jurisdiction for first-party policyholders. Claims are generally limited to breach of contract remedies. However, experienced counsel can identify alternative theories and maximize recovery even within New York’s restrictive framework. Pending legislation may expand policyholder protections in the future.
Read our complete guide to New York bad faith insurance law →
What Damages Can You Recover?
The remedies available in a bad faith insurance case can go far beyond the amount of your original claim. Depending on your state and the facts of your case, you may be entitled to:
- The full value of your denied or underpaid claim — The benefits your insurer should have paid in the first place.
- Interest — In Pennsylvania, statutory interest accrues at the prime rate plus 3% from the date you filed your claim. Other states have their own interest provisions.
- Punitive damages — Available in Pennsylvania and in Maryland third-party claims where the insurer acted with actual malice. Punitive damages are designed to punish the insurer and deter future misconduct.
- Attorney’s fees and court costs — In most jurisdictions, a successful bad faith claim shifts the cost of litigation to the insurer, meaning the insurance company pays your legal fees.
- Consequential damages — Additional losses you suffered as a result of the insurer’s bad faith, such as additional living expenses when a homeowners claim is wrongfully denied.
Insurance Companies We Hold Accountable
We represent policyholders against all major insurance carriers. Some companies have particularly well-documented histories of bad faith practices:
- State Farm — Documented pattern of claims reduction strategies developed with McKinsey & Company. Multiple class actions, AG investigations, and regulatory fines for lowball offers, improper depreciation, and systematic denial of valid claims.
- Allstate — Known for aggressive litigation tactics against their own policyholders when claims are disputed.
- GEICO — High complaint volume relative to market share, with documented issues involving claim delays and underpayment.
- Progressive — Pattern of offering lowball initial settlements and pressuring quick acceptance before policyholders understand the full value of their claims.
Regardless of which insurance company denied or underpaid your claim, we can evaluate your case and determine whether you have a viable bad faith claim.
Why Choose Siddons Law for Your Bad Faith Case
When your insurance company acts in bad faith, you need an attorney who understands both the legal framework and the tactics insurers use. Attorney Michael A. Siddons brings a thorough, detail-oriented approach to every bad faith case:
- Multi-state practice — Licensed and actively practicing in Pennsylvania, New Jersey, Maryland, and New York, giving you access to experienced counsel regardless of where your policy was issued.
- Comprehensive case evaluation — We review your policy, the insurer’s communications, and the claim history to build the strongest possible case.
- No upfront cost — Bad faith cases are typically handled on a contingency basis, meaning you pay nothing unless we recover for you.
- Aggressive advocacy — We are not intimidated by large insurance companies and their defense teams. We fight for the full value of your claim and hold insurers accountable for their misconduct.
Frequently Asked Questions
How long do I have to file a bad faith insurance claim?
The statute of limitations varies by state. In Pennsylvania, statutory bad faith claims must be filed within two years; common law claims within four years. New Jersey allows six years. Maryland provides three years from discovery. New York allows six years for breach of contract claims. Time is critical — contact an attorney as soon as you suspect bad faith.
Does it cost anything to find out if I have a case?
No. We offer free consultations for bad faith insurance claims. We will review your situation and let you know whether you have a viable case, at no cost and no obligation.
What if my insurance company has not officially denied my claim?
Unreasonable delay is itself a form of bad faith. If your insurer is stalling, requesting unnecessary documentation, or simply refusing to communicate, you may have a claim even without a formal denial letter.
Can I sue my insurance company and still keep my policy?
Yes. Insurers cannot legally retaliate against you for exercising your legal rights. Filing a bad faith claim does not void your policy.
What is the difference between a denied claim and bad faith?
Not every denied claim involves bad faith. An insurer can deny a claim if there is a legitimate coverage dispute. Bad faith occurs when the insurer denies, delays, or underpays a claim without a reasonable basis, or when it knows it lacks a reasonable basis and acts anyway.
Take Action Against Your Insurance Company
If your insurance company has denied your claim, offered an unreasonably low settlement, or is dragging out the process without explanation, you do not have to accept it. Pennsylvania, New Jersey, Maryland, and New York all provide legal remedies for policyholders who have been treated unfairly.
Contact Siddons Law today for a free consultation. Call (610) 255-7500 or fill out our online contact form. We will review your claim, explain your options, and fight to get you the compensation you deserve.
