Charleston, WV Bad Faith Insurance Lawyer

Dedicated Lawyers Experienced in Insurance Litigation

Your insurance company has a legal duty to deal with you honestly and fairly. When an insurer delays your claim without a real reason, denies coverage it owes, or lowballs a settlement, that is not just frustrating; it may be against the law. At Berthold Law Firm, PLLC, our Charleston attorneys have more than 75 years of combined experience holding insurance companies accountable in the Kanawha County Circuit Court and throughout West Virginia.

What Counts as Bad Faith Under West Virginia Law

West Virginia recognizes two separate legal paths for holding an insurance company accountable, and understanding both matters because they carry different requirements and different damages.

Common law bad faith comes from the West Virginia Supreme Court's 1986 decision in Hayseeds, Inc. v. State Farm Fire & Casualty. Under Hayseeds, every insurance policy carries an implied duty of good faith and fair dealing. If you substantially prevail in a lawsuit against your insurer over a denied or underpaid claim, you can recover your attorney's fees, your net economic losses from the delay, and damages for the aggravation and inconvenience the insurer caused you. If the insurer's conduct rises to the level of actual malice, meaning it knew your claim was valid but denied it anyway, punitive damages may also be available.

Statutory bad faith comes from the West Virginia Unfair Trade Practices Act. Under the standard set in Jenkins v. J.C. Penney Casualty Insurance Co. and clarified in McCormick v. Allstate Insurance Co., you do not have to win the underlying claim first if you can show the insurer's conduct was part of a general business practice, such as a company-wide pattern of delaying valid claims.

It's worth knowing that West Virginia law has changed who can bring these claims. In 2005, the West Virginia Legislature passed tort reform eliminating the right of third parties, meaning someone making a claim against another person's insurance policy rather than their own, to sue that insurer directly for bad faith. That right is now reserved for policyholders suing their own insurer (a first-party claim, such as your own uninsured/underinsured motorist coverage after a crash). Third-party claimants still have an option: filing an administrative complaint with the West Virginia Insurance Commissioner within one year of the incident. An attorney can help you determine which path applies to your situation.

Types of Insurance Claims We Handle

Auto and Truck Insurance Claims If your own insurer delays or undervalues a claim under your uninsured or underinsured motorist coverage after a crash, that is a first-party claim you have the right to pursue directly.

Homeowners and Property Insurance Claims Insurers sometimes delay, underinvestigate, or undervalue property damage claims after fire, storm, or water damage. An unreasonable delay when your insurer's liability is already clear is one of the clearest forms of bad faith recognized under West Virginia law.

Disability Insurance Claims Both short-term and long-term disability insurers have been known to deny valid claims or demand excessive documentation as a delay tactic. These cases can involve additional complexity if the policy is governed by federal law rather than state law.

Life Insurance Claims Life insurance companies sometimes look for technical reasons to deny a claim at the exact moment a family can least afford the delay. These claims are handled the same way as other first-party bad faith claims under West Virginia law.

Property and Casualty Insurance Broader business and casualty coverage disputes follow the same Hayseeds and Unfair Trade Practices Act framework described above.

Why Charleston Clients Choose Berthold Law Firm

Insurance companies have teams of adjusters and lawyers working to minimize what they pay out. Most policyholders have no way of knowing whether a settlement offer is fair or a denial is legitimate. We do. Our firm has represented clients in bad faith claims and trials against major insurers for decades, and we handle these cases on a contingency fee, you don't pay us anything unless we recover money for you.

To schedule your initial appointment for a complimentary case consultation, call us at (304) 605-2040!

Related Reading

• What is Insurance Bad Faith?