Bad Faith and Breach of Contract: What’s the Difference?

Every day, millions of people receive the news that their bad faith insurance claims were denied for a variety of reasons. However, in many circumstances, those claims are rejected unfairly or incorrectly.

While they may sound like the same thing, denied insurance claims as a result of bad faith and breach of contract aren’t quite the same thing.

The bad faith insurance lawyers at Millin and Millin are here to clarify the difference as we help to fight for you regardless of the reason!

Insurance Claim Denied – Breach of Contract or Bad Faith?

Insurance claims that are denied either in bad faith or through breach of contract generally depend on two key factors to be considered one or the other — reasoning and intent.

If an insurer attempts to or outright rejects a claim due to a dispute over the language in the contract, then you may have a breach of contract on your hands. However, if the insurance firm tries to deny the claim for malicious purposes outside of the contract’s language, you may have a potential bad faith situation.

General examples of a breach of contract include:

  • • Failure to pay in full or by the deadline, honor a promise made in the contract, or complete a job
  • • Tardiness in completion of a job with no legitimate excuse
  • • Did not make good on all services promised or produce a bond when necessary

On the other hand, examples of bad faith include:

  • • Failure to uphold legal or contractual obligations unethically or without just cause
  • • No intent to follow through on a legally binding agreement
  • • General dishonesty to the client or clients

Millin and Millin – Bad Faith Insurance Lawyers Here To Inform and Assist

Whether your insurance claim was denied as a result of breach of contract or bad faith, you can rest assured that the bad faith insurance lawyers at Millin and Millin will fight for you. Call us to speak with an experienced and skilled attorney today!

Do you believe that your insurance claim was denied unfairly but aren’t exactly sure if it was in bad faith or solely a breach of contract? Contact the bad faith insurance lawyers at Millin and Millin in McAllen for their assistance as soon as possible!

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