Insurance Bad Faith Lawyer in Mobile, AL

Q: What compensation can I recover in a bad faith lawsuit?

Unpaid policy benefits - what you were originally entitled to Additional damages - financial damages incurred as a result of the insurer’s misconduct Emotional distress damages - if the bad faith actions caused severe hardship Punitive damages - while very rare, to punish the insurance company for acting fraudulently or with reckless disregard

When you pay for insurance, you expect your provider to honor your policy and handle claims fairly. Unfortunately, many insurers engage in bad faith tactics—delaying payments, underpaying claims, or wrongfully denying coverage—to protect their bottom line. If your insurance company has failed to act in good faith, Long & Long is here to fight for you. Our experienced bad faith insurance lawyers in Mobile have a proven track record of holding insurers accountable and securing the compensation policyholders deserve.

At Long & Long Injury Attorneys, we understand the stress and financial burden caused by unfair insurance practices. That’s why we aggressively challenge insurers who violate policy agreements, using our deep knowledge of Alabama insurance law to maximize your claim. Whether you’re facing a denied, delayed, or undervalued insurance claim, our team is ready to take action. Contact us today for a free case review—let’s hold your insurer accountable and get you the justice you deserve.

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What’s On This Page

Why You Need an Attorney for Your Insurance Bad Faith Case

Insurance companies have teams of lawyers and adjusters whose job is to minimize payouts and protect their bottom line. Going up against them alone puts you at a serious disadvantage. Without an attorney, you risk missing important legal deadlines, failing to gather the right evidence, or accepting a lowball settlement that does not fully cover your losses. Insurers count on policyholders not knowing their rights, making it easier for them to deny or delay valid claims. A skilled insurance bad faith lawyer levels the playing field.

If you suspect your insurance company is engaging in bad faith tactics in your injury claim, you’re in the right place. At Long & Long, our attorneys know how to expose bad faith tactics, negotiate effectively, and take your case to court if necessary to protect your rights. We handle every step of the process so you can focus on your recovery and moving forward. We won’t let your insurer take advantage of you.

Get a free case review with a member of our team to learn what your case could be worth.

Why Choose Long & Long as Your Insurance Bad Faith Lawyer in Mobile?

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What Is Insurance Bad Faith?

Insurance bad faith occurs when an insurance company unfairly denies, delays, or undervalues a legitimate claim, violating its legal duty to act in good faith toward policyholders.

When you purchase insurance, you enter into a binding contract—in exchange for your premiums, the insurer agrees to handle claims honestly and pay valid benefits. However, some insurers prioritize profits over policyholders, using deceptive tactics to avoid paying what they owe.

Under Alabama law, insurance companies have a legal obligation to investigate and process claims fairly. If an insurer wrongfully denies a claim, fails to investigate it properly, or refuses to offer a reasonable settlement without justification, they may be acting in bad faith.

Alabama recognizes both first-party bad faith claims (when an insurer refuses to pay your own claim, such as property damage or health insurance) and third-party bad faith claims (when your insurer fails to defend you against a lawsuit or settle within policy limits). If your insurer is acting unfairly, you may have grounds for a bad faith insurance lawsuit, allowing you to recover damages beyond your original claim, including possible punitive damages.

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How to Prove Insurance Bad Faith in Alabama

If your insurance company has unfairly denied, delayed, or underpaid your claim, you may have grounds for a bad faith insurance lawsuit. However, proving bad faith in Alabama requires strong evidence and a strategic legal approach. Courts will not simply assume an insurer acted unfairly—you must demonstrate (with evidence) that they violated their legal obligations.

To prove an insurance bad faith claim in Alabama, you generally need to establish the following:

1. You Had a Valid Insurance Policy

You must show that you had an active policy with the insurance company at the time of your claim.
The type of loss (property damage, medical expenses, etc.) must be covered under your policy terms.

2. You Filed a Legitimate Claim

Your claim must have been properly submitted with all necessary documentation.
If the insurer claims the paperwork was incomplete or incorrect, you should provide proof of the claim submission.

3. The Insurance Company Acted in Bad Faith

The insurer denied, delayed, or significantly undervalued your claim without valid reason.
The insurer ignored or failed to properly investigate your claim.
The insurer misrepresented your policy coverage or refused to provide a written explanation for their decision.

4. The Insurer’s Actions Were Intentional or Reckless

Alabama law requires proving that the insurers knew they were wrong or acted with reckless disregard for your rights.
Mistakes or clerical errors alone do not qualify as bad faith.

5. You Suffered Financial or Emotional Harm as a Result

You must show that the insurer’s actions caused monetary loss, emotional distress, or other damages.
In rare cases, you may also be eligible for ‘punitive damages’ if the insurer’s behavior was especially egregious.

Alabama Insurance Bad Faith Laws

Alabama has strict legal standards governing insurance bad faith claims. Below are the key Alabama state laws that impact bad faith insurance cases:

Alabama Code § 6-5-370 – First-Party Bad Faith Claims

This law establishes that an insurance company can be sued for bad faith when it wrongfully denies, delays, or mishandles a valid claim.
The policyholder must prove that the insurer had no legitimate reason to deny the claim and knew (or should have known) that their actions were unjustified.

Alabama Code § 6-2-38 – Statute of Limitations for Bad Faith Claims

The time limit to file an insurance bad faith lawsuit in Alabama is 2 years from the date of the insurer’s wrongful action (denial, delay, or improper handling of the claim).
If the policyholder does not take legal action within this timeframe, they lose the right to sue for bad faith.

Alabama Code § 27-12-24 – Unfair Insurance Practices Act

This law prohibits insurers from engaging in fraudulent, misleading, or deceptive practices when handling claims.
Examples of unfair practices include:
- Misrepresenting policy terms or coverage
- Failing to conduct a proper investigation
- Deliberately delaying payments without justification

Alabama Code § 6-11-20 – Punitive Damages in Bad Faith Cases

If a policyholder proves that an insurer acted with malice, fraud, or reckless disregard for their rights, the court may award punitive damages to punish the insurer and deter future misconduct.
Alabama places limits on punitive damages, but exceptions exist for cases involving intentional wrongdoing.

Did You Experience Insurance Bad Faith?

If you feel you experienced insurance bad faith in Mobile, please contact our bad faith insurance lawyers at Long & Long Injury Attorneys today to discuss your case for free and learn your legal options.

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What Compensation Can You Recover in an Insurance Bad Faith Claim?

Under Alabama state law, you may be entitled to significant compensation if your insurance company unfairly denies, delays, or undervalues your valid claim. A successful bad faith insurance lawsuit may recover compensation beyond what you were originally owed.

In Alabama, bad faith insurance claims can lead to 3 main types of compensation:

Compensatory Damages (Financial Losses You Suffered)

Under Alabama Code § 6-5-370, insurers that act in bad faith can be held liable for all financial losses their misconduct caused. These may include:

Unpaid policy benefits: The full amount you were originally entitled to under your insurance policy.
Additional out-of-pocket expenses: Costs incurred due to the insurer’s refusal to pay, such as repair costs, medical bills, or legal fees.
Lost income: If the insurance company’s bad faith actions caused financial hardship or forced you to take time off work.
Interest on delayed payments: Compensation for unreasonable delays in paying a valid claim.

Emotional Distress & Mental Anguish Damages

Insurance bad faith does not only cause financial harm—it can lead to extreme stress, anxiety, and emotional suffering. Under Alabama law, policyholders can seek damages for mental anguish caused by the insurer’s wrongful conduct, particularly when delays or denials create severe hardship (e.g., medical treatment delays, home damage, or financial ruin).

Alabama courts have recognized that deliberate misconduct by an insurer can justify compensation for emotional distress, especially when bad faith tactics significantly impact a person’s well-being.

Punitive Damages (Punishment for the Insurance Company)

Compensation for punitive damages is very rare. However, Alabama allows punitive damages in bad faith cases where the insurer acted with fraud, malice, or reckless disregard for the policyholder’s rights (Alabama Code § 6-11-20). These damages are designed to punish the insurance company and deter future misconduct.

Your attorney will be able to tell you if your unique claim may be eligible for punitive damages (most are not).

Steps to Take if You Suspect Insurance Bad Faith in Your Claim

If you suspect your insurer has acted in bad faith while handling your injury claim, it’s important to take immediate action. Alabama law protects policyholders from bad faith insurance practices, but proving bad faith requires strong evidence and strategic legal action. Follow these steps to protect your rights and build a strong case.

1. Review Your Insurance Policy

Carefully read your insurance policy documents to understand coverage, exclusions, and claim process. Make sure your claim falls within the terms of your policy and that you have met all reporting deadlines.

2. Document Everything

Keep detailed records of all communications with your insurance company, including emails, letters, and phone calls. Save all evidence of damages, such as photos, receipts, medical bills, repair estimates, expert reports, etc.

3. Request a Formal Explanation

Under Alabama Code § 27-12-24, insurers must handle claims fairly and provide clear reasons for denials or delays.

If your insurer refuses to provide a legitimate reason in writing, this could be evidence of bad faith.

4. File a Complaint with the Alabama Department of Justice

If you believe your insurer is violating state insurance laws, you can file a report with the Alabama Department of Insurance. This may prompt an investigation into the insurer’s actions.

5. Avoid Accepting a Lowball Settlement

Your insurance company may offer a low settlement hoping you’ll accept it out of frustration, or for convenience. Do not agree to any settlement without consulting an attorney–you may be entitled to far more compensation.

6. Consult With an Experienced Bad Faith Attorney

Proving bad faith is complex and difficult. Insurance companies will aggressively defend their actions. A bad faith attorney can gather evidence, negotiate with the insurer, navigate legal processes, and take your case to court if needed.

Remember, you have 2 years from the date of the wrongful claim denial or bad faith to file a lawsuit. It is important to be proactive, as building a case and filing a claim can take time.

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Insurance Bad Faith FAQs

What is insurance bad faith?

Insurance bad faith is when an insurance company unreasonably denies, delays, or underpays a valid claim, violating its duty to act in good faith toward policyholders.

What are some common examples of bad faith insurance practices?

Unjustified claim denial with no valid explanation
Excessive delays in processing or paying a claim
Misrepresenting policy terms to avoid paying a valid claim
Failing to conduct a proper investigation before denying coverage
Offering a lowball settlement far below the claim’s actual value

How do I know my insurance company is acting in bad faith?

If your insurer ignores your claim, delays communication, refuses to explain a claim denial, or pressures you to accept an unfairly low settlement, they may be acting in bad faith.

How do I prove my insurer is acting in bad faith?

To prove your insurer is acting in bad faith, you must show that:

The insurer acted intentionally or recklessly in its refusal to pay
You had a valid policy covering your claim
You filed a legitimate claim with proper documentation
The insurer denied, delayed, or undervalued your claim without a reasonable basis

What should I do if I suspect bad faith in my claim?

Review your policy and confirm coverage
Document all communication with the insurer
Request a written explanation for the claim denial or delay
File a complaint with the Alabama Department of Insurance
Consult with an insurance bad faith attorney for legal options

What compensation can I recover in a bad faith lawsuit?

Unpaid policy benefits - what you were originally entitled to
Additional damages - financial damages incurred as a result of the insurer’s misconduct
Emotional distress damages - if the bad faith actions caused severe hardship
Punitive damages - while very rare, to punish the insurance company for acting fraudulently or with reckless disregard

Do I need a lawyer for an insurance bad faith claim?

While not required, having an attorney levels the playing field and significantly improves your chances of securing maximum compensation.

How much does it cost to hire a bad faith insurance lawyer?

At Long & Long Injury Attorneys, we handle bad faith cases on a contingency fee basis, meaning you don’t pay anything unless we win your case.