Bad Faith Insurance claims in Pennsylvania
An insurer owes its own policyholder a duty of good faith. Refusing to pay a valid claim without a reasonable basis, dragging out an investigation or failing to explain a denial can support a separate bad faith claim.
Pennsylvania has a statutory bad faith remedy, and the documentation of how the insurer handled the file is central to it.
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Conduct that may support a claim
Unreasonable denial
Refusing a covered claim without a reasonable basis for doing so.
Unjustified delay
An investigation that never concludes, with repeated requests for the same information.
Lowball valuation
Offers disconnected from the documented loss, with no explanation.
Failure to defend or settle
Exposing a policyholder to a judgment above policy limits.
Injuries frequently seen in these cases
- Medical bills left unpaid
- Financial harm from a delayed or denied claim
- Exposure to judgment above policy limits
- Interest, costs and, in some cases, statutory penalties
Who may be responsible
Responsibility depends entirely on the facts, and no one can determine it from a web page. These are the parties whose conduct is typically examined.
The insurer
How the claim was investigated, valued and communicated.
A claims administrator
Third parties handling the file on the insurer's behalf.
Damages that may be recoverable
What a claim may include depends on the injuries, the available insurance and the evidence. Nothing here is a prediction of value.
- Medical treatment already received, from the emergency room through rehabilitation
- Future medical care and therapy a physician expects will be needed
- Wages lost while unable to work, and reduced earning capacity in longer-term cases
- Property damage, out-of-pocket costs and travel to treatment
- Pain, suffering and loss of life's pleasures where the law allows it
Steps that protect a claim
- Get medical attention, even if the injuries seem minor at first
- Report what happened and ask how to obtain a copy of the official report
- Photograph the scene, the vehicles or the hazard, and your visible injuries
- Collect names and phone numbers for anyone who saw what happened
- Keep every bill, record and piece of correspondence in one place
- Be careful giving a recorded statement before you understand your own injuries
Frequently asked questions
Is every denied claim bad faith?
No. An insurer may deny a claim where it has a reasonable basis. Bad faith concerns the absence of a reasonable basis and the insurer's knowledge or reckless disregard of that.
What does Pennsylvania's bad faith statute allow?
42 Pa.C.S. § 8371 permits interest, court costs, attorney fees and, in appropriate cases, punitive damages where bad faith is established.
What should I keep?
The policy, every letter and email, claim notes you receive, and a log of calls with dates and names.
Question not answered here? Ask Robert — Munley's virtual intake assistant answers common bad faith insurance questions 24/7.
Related guides, tools and pages
Related practice areas
Where we serve
Munley Law represents clients across Pennsylvania. See the areas we serve for local courts, hospitals and roads, or browse the free tools.
This page is general information about this type of case. It is not legal advice, and reading it does not create an attorney-client relationship. Last reviewed 2026-09-01.
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