Getting It Wrong

Posted by William (Bill) Ford, III

Judges can, and do, “get it wrong” on matters of coverage. But a prior erroneous ruling by a court does not mean the insurance company must have acted “reasonably” in denying your claim. After your successful appeal, the insurer may be subject to bad faith liability. That’s because the focus is on when the insurer erroneously denied the claim–not when a court made the same mistake.