Marcek Law Logo

Call Us for a Free Consultation: (702) 366-7076

Call Now:

Damages Available for Insurance Bad Faith

If an insurance company denies a valid insurance claim, the insured may decide to pursue a case for bad faith against the insurance company. If the insured prevails, the damages can be significant.

Bad Faith Insurance Elements

In Nevada, when an insurance company is in contract with an insured individual or business, it has the duty to act in good faith toward its clients. Nevada law protects insurance holders from the bad faith acts of insurance companies. If an insurance company denies a valid claim, a personal injury attorney may decide to pursue a bad faith insurance claim on behalf of the insured.

To prove the claim, the personal injury lawyer must establish the following:

  • The plaintiff has an insurance contract with the defendant
  • The plaintiff filed a claim with the insurer and it was a type that was covered under the policy
  • The insurance company acted unreasonably
  • The insurance company knew it had acted unreasonably
  • The insurance company did not have a reasonable basis to deny the claim
  • The plaintiff suffered damages because the insurance company did not pay the claim or delayed in paying the claim

There are a number of ways that an insurance company may engage in bad faith practices. For example, the insurance company may try to pay an inadequate amount of compensation after accepting the claim, delay payment, make an unreasonable interpretation of policy language or fail to thoroughly investigate a claim promptly.

Actual Losses

The plaintiff who prevails in a bad faith insurance claim may be able to recover from actual losses that he or she suffered because of the denial. Actual losses are often the reasonable value of the claim that was not covered or the difference between the amount paid and the true value of the claim, as well as extra-contractural damages like out-of-pocket expenses that the insured incurred as a result of the insurer’s bad faith acts.

Punitive Damages

Nevada’s bad faith insurance law allows for punitive damages to be awarded against an insurance company. These damages are intended to punish the insurance company for acting in bad faith and to deter future similar behavior. These damages often exceed the amount of actual damages. Nevada law ordinarily imposes a cap on punitive damages of up to three times the amount of actual losses. However, the law specifically excludes bad faith insurance claims from this cap.

Share this article
Las Vegas Personal Injury Lawyer Cliff Marcek

Mr. Marcek has published several legal articles, been a featured speaker on legal topics and has represent several clients pro bono during his career. In addition, Mr. Marcek was a member of the Attorney Generals Commission on Military Assistance in 2015.

Case Results

Verdict – Death Due to Exposure to Benzene from Gasoline


Verdict – Car Crash in Which the Client
Had a Back Injury


Verdict – Car Crash Involving Hip Injury

call personal injury attorney icon
Let’s Get Started with Your Recovery. Call Las Vegas Motorcycle Accident Lawyer Cliff W. Marcek
at: (702) 366-7076.

Related Posts