Insurance companies are always happy to take your money. However, when it comes time to pay your claims, many of them try to find excuses not to pay. Some of them try insultingly low settlement offers. Others will deny your claim entirely.

If an insurance company fails to fulfill its contractual obligations to you, you may have some recourse. The bad faith insurance lawyers at Gay Chacker & Ginsburg can evaluate your situation and tell you whether it’s in your best interests to pursue a lawsuit.

If you believe your insurance company is acting in bad faith, contact us to set up a free consultation.

Why Choose Gay Chacker & Ginsburg?

Insurance companies have their own powerful legal teams. This means that when you go up against an insurer, you need an attorney with the right kind of experience.

At Gay Chacker & Ginsburg, we’ve been representing clients against dishonest insurance companies for more than 50 years.

Our commitment to excellence shows — our team includes attorneys who have been named to The Best Lawyers in America® 2025, and we have earned a reputation for securing large verdicts and settlements for those we represent.

The diverse wealth of experience in our team allows us to deliver superior service to our clients.

Our team includes Dr. Brendan Mulligan, an attorney who is also a practicing dentist. In cases involving health insurance companies or healthcare practitioners, Dr. Mulligan’s unique insights help us put together strong arguments that increase our clients’ chances of securing favorable outcomes.

Above all, we understand that many of our clients are facing one of the most difficult times of their lives. We treat every client like family, and if we take your case, you can count on aggressive representation and compassionate support.

What Is a Bad Faith Insurance Claim?

When you file a bad faith insurance claim, you are alleging that your insurance company is not fulfilling its contractual obligation to you. There are a number of ways an insurer can act in bad faith, but many of the bad-faith insurance claims we handle involve one of the following:

  • An insurer refusing to pay for a covered loss
  • An insurer misrepresenting the language in your policy
  • An insurer unreasonably denying or refusing to investigate a claim

In a bad faith insurance lawsuit, you may be able to recover damages in excess of what the insurer refused to pay. However, these cases can be difficult to prove and challenging to litigate.

Before beginning a bad faith insurance lawsuit, you should make sure you’re working with an attorney who has experience with these specific kinds of cases.

Examples of Bad Faith Insurance Claims

Many policyholders trust that insurance companies will fulfill their obligations. So when an insurer acts in bad faith, these policyholders might assume the insurer is acting reasonably.

Unfortunately, it’s not uncommon for insurance companies to get away with acting in bad faith because policyholders don’t know what to look for. Here are some of the most common examples of insurance companies failing to fulfill their obligations.

Failing to Conduct a Thorough, Prompt Investigation

Insurance companies are obligated to actually investigate claims before denying them. Sometimes, an insurer will approve a portion of a claim but deny another portion without investigating first. Insurance companies will also sometimes completely deny a claim without promptly and thoroughly investigating it.

For example, imagine your home is destroyed in a fire. Your insurance company sends an adjuster to assess the site. The adjuster details the damage your home has sustained in their report but makes no effort to determine the cause of the fire.

Despite that fact, the insurance company states that the fire was arson and that it, therefore, is not obligated to pay your claim.

Intentionally Delaying Approval for Medical Treatment

Insurance companies know that when your medical provider requests preauthorization for a medical service, timely approval is essential. However, some insurers will delay approval, hoping that you will give up.

For example, imagine your doctor determines that you need surgery for an ongoing problem. The doctor submits a request to your insurance company. Despite repeated follow-up calls from both you and your doctor, the insurance company does not approve or deny the request for several months.

Misrepresenting Policy Language

Sometimes, an insurance company or an insurance broker will deliberately misrepresent policy coverage. This is a sadly common example of insurers acting in bad faith.

Gay Chacker & Ginsburg recently won a $10.4 million verdict for a client who was the victim of this kind of insurance malpractice. Our firm represented the estate of Neil Lipschutz, a man who was struck by a vehicle and killed while jogging.

Mr. Lipschutz had informed his insurance broker that he wanted underinsured motorist coverage that would pay out if he was harmed or killed, even if he wasn’t driving a vehicle that was covered under his insurance policy.

The broker who sold him the policy led him to believe that he had purchased a policy with that coverage. In reality, the broker sold Mr. Lipschutz a $1 million underinsurance policy that only covered him if he was involved in an accident while driving.

Because of that misrepresentation, Mr. Lipschutz’s family was unable to collect on the policy. Gay Chacker & Ginsburg won a wrongful death judgment of $10.4 million against the driver of the car that killed Mr. Lipschutz, and that award included a $450,000 judgment against the deceptive insurance brokers.

Denying Claims Unreasonably

In some cases, an insurance company knows you have a valid claim. However, to avoid paying anything, it might deny your claim.

For example, imagine you have a car insurance policy that includes comprehensive coverage. A tree falls on your car and destroys it. You know your policy covers damage to your car from any source. You submit a claim, but your insurance company refuses to pay anything because it says you filled out a claim form incorrectly.

Making Threatening Statements to a Policyholder

This might sound so unprofessional that it’s out of the realm of possibility. Unfortunately, some insurance companies do threaten policyholders to discourage them from filing a claim or appealing a denial.

For example, imagine your home is damaged by an electrical fire. Your insurer denies the claim because it says the fire was caused by arson. When you appeal the denial, the insurer says it knows you caused the fire and will report you to local authorities if you continue to fight the denial.

Refusing to Give You Documentation Supporting Its Decision

If an insurance company denies your claim, it must provide documentation that supports its decision upon request. You are entitled to an explanation of why your claim was denied, and if your insurer fails to provide that documentation when you ask for it, the insurer is acting in bad faith.

For example, imagine you seek emergency medical care after a car accident. Your insurance company denies the insurance claim without reason. You request documentation of that decision in writing, and the insurer refuses to provide it.

Offering a Settlement That Is Less Than the Objective Worth of a Claim

This is an especially nuanced area of law. Lowball settlement offers do not necessarily mean your insurer is acting in bad faith. However, an objectively low settlement may be grounds for a bad-faith insurance lawsuit.

For instance, imagine your car insurance policy includes collision coverage. You damage your car by hitting a pole at low speed. Repairs to your car cost $5,000, but your insurance company only offers to pay for $1,000 worth of repairs.

What Does Pennsylvania Law Say About Bad Faith Insurance?

In 1990, Pennsylvania passed the Pennsylvania Unfair Trade Practices and Consumer Protection Act. This law gave consumers the right to directly sue insurance companies for bad faith. It also expanded the legal remedies available to those who have been wronged by insurers.

The law allows the court to order an insurer found guilty of acting in bad faith to pay the following (as well as other legal remedies):

  • The plaintiff’s court costs and attorney fees
  • Interest on the amount of the claim starting when the plaintiff filed it

The interest on that claim can be substantial. The law allows the court to assign an interest rate of the current prime interest rate plus 3%.

What to Do if Your Insurance Company Is Acting in Bad Faith

It can be hard to know what to do if your insurance company acts in bad faith. You may be facing the stress of a difficult event as well as the financial stress that comes with a delayed claim. For example, if your insurer is refusing to pay for your totaled car, you may be forced to purchase a new vehicle without the insurance payout.

Knowing what to do when your insurer acts unethically makes it much easier to navigate this challenging time. Here’s a look at the steps you should take when dealing with an insurer acting in bad faith.

1. Document Everything

Before you consider pursuing any kind of lawsuit, documentation is essential. Bad faith insurance lawsuits are often challenging to argue, so the more documentation you can bring to your attorney, the better. Here are some of the main kinds of documentation you need:

  • Your original claim documents (the insurance claim you filed)
  • A copy of your insurance policy
  • Documents supporting your original claim (medical bills, car repair bills, etc.)
  • Documentation of all contacts with the insurance company
  • A timeline of events, including the incident that led to your claim

When you schedule your initial consultation, your attorney should be able to tell you if there is any additional documentation you need to bring.

2. Do Not Sign Anything From the Insurance Company

If your insurance company has made you a settlement offer it knows is too low (or if it has denied a claim entirely), it might pressure you to sign something saying you agree to the decision. You should never sign any document like this until you speak to an attorney.

Because some unethical insurers will deliberately mislead customers as to what is in a document, it’s best to be extra cautious and avoid signing anything until your lawyer has looked at it.

3. Consult With a Bad Faith Insurance Lawyer

Not every claim denial or delay is a case of bad faith insurance. This is a very complex area of the law, and unless you have a legal background, you likely will not be able to tell if your case has merit without consulting an attorney.

Bad-faith insurance lawyers handle these cases almost daily. An attorney can review your claim and determine whether the insurer acted in bad faith and, if it did, whether a bad-faith insurance lawsuit is the best way to resolve the situation.

When you book your free consultation with an attorney, make sure you bring as much documentation as possible. To help the attorney accurately assess the potential value of your claim, make sure to bring documentation that supports both your original insurance claim and the fact that the insurer is not fulfilling its obligations to you.

4. File a Lawsuit Within the Statute of Limitations

Under Pennsylvania law, the statute of limitations for filing a bad faith insurance lawsuit is two years. The countdown starts at the first instance of insurance company misconduct. For example, if your insurer wrongfully denies a claim, the statute of limitations is two years from the date of the claim denial.

However, it’s worth noting that while you technically have two years to file a lawsuit, you should talk to a bad-faith insurance lawyer as soon as you can. It takes time for your attorney to put together a convincing case, so it’s in your best interests to give your lawyer as much time as possible.

Do All Bad Faith Insurance Claims Go to Court?

While our firm has extensive trial experience and is completely prepared to take your case to trial, it’s important to understand that not all bad-faith insurance claims must be decided by a judge and jury.

The majority of these cases are settled out of court, meaning that you and the insurance company agree on a certain amount of money. The insurance company pays you that amount, and in return, you agree to drop the lawsuit.

Insurance companies almost always want to avoid litigation. If your case goes all the way to court, your insurer will have to pay its own attorneys. It also may have to deal with bad publicity. Because your insurer knows we won’t hesitate to go to trial, it has a major incentive to offer you a respectable settlement amount.

How Gay Chacker & Ginsburg Can Help You

If your insurance company is behaving unethically, you know you can’t fight it alone. Having a lawyer represent you is essential, and the right choice of lawyer can make the difference between winning your case and walking away with nothing.

At Gay Chacker & Ginsburg, we’re ready to put our experience to work for you. While we’re proud of our ability to aggressively litigate and negotiate with insurance companies, we’re also proud of the way we treat our clients.

When you work with us, you’ll be treated like a person — not just a case number. You don’t have to take our word for it, however. Our clients appreciate the one-on-one attention and the great results we’re often able to deliver.

It’s also important for our clients to understand that working with us is risk-free. We work on a contingency fee basis, meaning you only pay us if we are able to recover compensation for you. If we do secure compensation, you agree to pay us a certain percentage of it.

We understand the frustration of dealing with insurance companies that don’t fulfill their obligations. Let us fight for you!

Is Your Insurance Company Refusing to Pay a Valid Claim?

You took out an insurance policy to make sure you were covered in case of a loss. If you have faithfully paid your insurance premiums, your insurance company has no right to refuse to uphold its end of the agreement.

Insurance companies that behave unethically must be held accountable, and at Gay Chacker & Ginsburg, we have decades of experience doing so. If you think your insurance company is acting in bad faith, call us or get in touch online to book your free consultation today.