Insurance Bad Faith Attorneys Serving St. Louis, Columbia, St. Charles, and All of Missouri

You paid your premiums faithfully. You filed your claim honestly. And your insurance company denied it, delayed it, or paid far less than what your policy says you are owed.

That is not a misunderstanding. In Missouri, it may be a crime called vexatious refusal, and it entitles you to more than just the claim value you were originally owed. Strong Law, P.C. has been holding insurance companies accountable for bad faith conduct in Missouri since 1976. If your insurer is playing games with a legitimate claim, we are ready to fight back.

With more than $7 billion recovered and 7 nationally acclaimed trial lawyers, Strong Law brings the resources and the legal firepower to take on even the largest insurance companies. Our St. Louis bad faith insurance attorneys understand the specific Missouri statutes that give policyholders powerful leverage when insurers act in bad faith. Call (314) 940-8300 for a free consultation. No fee unless we win.

FREE CASE REVIEW | (314) 940-8300 | injury@stronglaw.com | No Fee Unless We Win

Why Strong Law, P.C. for a Bad Faith Insurance Case in St. Louis

Bad faith insurance cases require attorneys who understand both the underlying claim and the insurance law that creates additional liability when insurers misbehave. Strong Law has been handling both for nearly five decades in Missouri.

OUR CREDENTIALS

• Founded in 1976 with over 45 years of proven results for Missouri injury victims and policyholders
• $7+ billion in verdicts and settlements recovered
• 7 nationally acclaimed trial lawyers
• 99% positive client review rate
• Named to the Inner Circle of Advocates
• Recognized by Martindale-Hubbell AV Preeminent, Super Lawyers (Top 10 in Missouri), Best Lawyers in America, Lawyer of the Year (Best Lawyers), and US News Best Law Firms
• St. Louis office at 5100 Daggett Ave STE B, serving St. Louis, Columbia, and St. Charles

What Is Insurance Bad Faith?

An insurance policy is a contract. When you pay premiums, the insurer promises to provide coverage and to handle claims fairly and in good faith. Bad faith occurs when an insurance company breaches that obligation by acting dishonestly, unreasonably, or with willful disregard for the policyholder’s rights.

Every insurance company in Missouri has a duty of good faith and fair dealing to its policyholders. This duty exists in both the policy contract itself and in Missouri statutory and common law. When an insurer violates it, the policyholder is entitled to more than just the policy benefits that were withheld. Missouri law provides specific remedies designed to punish bad faith conduct and deter it in the future.

Missouri’s Vexatious Refusal Statute: The Most Powerful Tool Against Bad Faith Insurers

Most states have some form of bad faith insurance law, but Missouri’s vexatious refusal statute is one of the most policyholder-friendly in the country. Understanding it is critical to understanding what your bad faith claim may be worth.

Missouri Revised Statutes Section 375.420

Missouri Section 375.420 creates statutory liability when an insurance company refuses to pay a claim without reasonable cause. Under this statute, if a court or jury finds that an insurer vexatiously refused or delayed payment of a claim, the insurer is liable not only for the original claim amount but also for:

• A penalty of up to 20 percent of the first $1,500 of the claim, and up to 10 percent of the amount of the claim in excess of $1,500
• Reasonable attorney’s fees incurred in bringing the action
• The full amount of the original claim that was wrongfully withheld

The attorney’s fees provision is particularly powerful. In bad faith cases involving substantial claims, attorney’s fees alone can add up to significant sums, which creates real economic pressure on insurance companies to handle claims fairly rather than face the compounded liability of a vexatious refusal finding.

Missouri Section 375.296

Section 375.296 provides additional protections specifically for first-party property insurance claims, requiring insurers to acknowledge claims promptly, conduct a reasonable investigation, and make payment decisions within specified timeframes. Violations of the procedural requirements in this statute can support a vexatious refusal claim.

Common Law Bad Faith

Beyond the statutory framework, Missouri recognizes a common law cause of action for bad faith by an insurer against its own policyholder. In first-party bad faith cases, the insurer owes a duty to handle claims with reasonable care and in a manner consistent with the policyholder’s reasonable expectations under the contract. Breach of this duty, particularly when accompanied by evidence of intentional misconduct, can support claims for both compensatory and punitive damages beyond the statutory penalties.

Third-Party Bad Faith

Third-party bad faith arises when an insurer unreasonably refuses to settle a claim against its insured within policy limits, exposing the insured to a judgment in excess of their coverage. Missouri recognizes this cause of action, and injured parties may also have claims based on assignments from the insured. When an insurer’s refusal to accept a reasonable settlement offer within policy limits results in an excess judgment against the insured, the insurer may be fully liable for the entire judgment, including the amount above policy limits.

Common Bad Faith Insurance Practices in Missouri

Insurance companies engage in a range of tactics that may constitute bad faith under Missouri law. The most common patterns we see in St. Louis bad faith cases include:

Wrongful Denial of a Legitimate Claim

Denying a claim without a reasonable basis, relying on policy exclusions that do not actually apply to the circumstances, or misrepresenting the policy’s coverage are all forms of bad faith denial. In Missouri, an insurer who denies a claim must have a reasonable basis for the denial at the time it is made. Post-hoc rationalizations developed during litigation do not satisfy this requirement.

Unreasonable Delay in Claim Processing

Missouri’s insurance regulations and the vexatious refusal statute both impose timeliness obligations on insurers. Deliberately prolonging the claims process, failing to communicate decisions within reasonable timeframes, or repeatedly requesting unnecessary documentation as a stall tactic can all constitute actionable delay.

Inadequate Investigation

An insurer has an obligation to conduct a prompt, thorough, and objective investigation of a claim before making a coverage decision. When an insurer makes a coverage denial based on an incomplete investigation, relies on a biased or unqualified investigator, or ignores evidence favorable to the policyholder, the investigation failure may support a bad faith claim.

Lowball Settlement Offers

Offering a settlement that is substantially below the documented value of a legitimate claim, without a reasonable basis for the low offer, can constitute bad faith. This is particularly common in property damage claims where insurers use depreciation formulas that undervalue replacement costs, and in personal injury claims where insurers minimize documented medical expenses and lost wages.

Misrepresentation of Policy Coverage

Telling a policyholder that a covered loss is not covered, or that the policy limits are lower than they actually are, are forms of fraud and bad faith that may give rise to claims beyond the original policy benefits.

Failure to Defend

When an insured is sued by a third party on a claim that is potentially within the policy’s coverage, the insurer has a duty to defend. Wrongfully refusing to provide a defense, withdrawing from a defense mid-litigation without proper notice, or providing a deficient defense may all constitute bad faith, and any resulting judgment against the insured may be chargeable to the insurer.

Unreasonable Reservation of Rights

Issuing a reservation of rights letter that improperly limits an insured’s coverage, or using a reservation of rights as a pretext to conduct a biased investigation while refusing to pay clearly covered claims, can also constitute bad faith.

Types of Insurance Claims That Generate Bad Faith Cases

Bad faith conduct can arise in virtually any type of insurance claim. The most common types we handle in St. Louis include:

Auto Insurance Bad Faith

Missouri requires drivers to carry liability insurance, and most also carry uninsured/underinsured motorist (UM/UIM) coverage and collision coverage. Bad faith in auto insurance cases most commonly arises in UM/UIM disputes, where your own insurer denies or undervalues your claim after you are injured by an uninsured driver, and in property damage claims where the insurer undervalues the vehicle or improperly applies depreciation.

Homeowners’ Insurance Bad Faith

Homeowners’ insurance bad faith cases in Missouri frequently involve disputes over storm damage, including tornado, hail, and wind damage claims, as well as water damage, fire claims, and theft. Insurers in these cases often dispute the cause of damage, improperly invoke policy exclusions, undervalue repair costs, or delay payment until the statute of limitations threatens to expire. Missouri homeowners have particularly strong protections under the vexatious refusal statute.

Health Insurance Bad Faith

Wrongful denial of medical treatment authorizations, improper claim denials based on coverage exclusions, and retroactive policy rescissions after a serious diagnosis are all documented forms of health insurance bad faith. While federal ERISA law preempts some state bad faith claims for employer-sponsored health plans, individual health insurance plans remain fully subject to Missouri’s vexatious refusal statute.

Life Insurance Bad Faith

Life insurance claim denials most commonly arise from disputes over policy exclusions, investigations into the cause of death, and allegations of misrepresentation on the original application. When an insurer denies a life insurance claim without a reasonable basis, Missouri’s vexatious refusal statute allows the beneficiary to recover the death benefit plus penalties and attorney’s fees.

Disability Insurance Bad Faith

Disability insurance bad faith cases involve wrongful termination of benefits, improper denial of initial claims based on insufficient medical review, and disputes over the definition of disability in the policy language. These cases often involve complex medical and vocational evidence and require attorneys with experience navigating both insurance law and the underlying medical issues.

Business Interruption Insurance Bad Faith

Disputes over business interruption coverage, commercial property claims, and liability coverage for St. Louis businesses are increasingly common. When an insurer wrongfully denies or underpays a legitimate commercial claim, Missouri’s bad faith remedies apply with equal force to business policyholders.

What Can You Recover in a Missouri Bad Faith Insurance Case?

A successful bad faith insurance claim in Missouri can recover significantly more than just the original claim value that was withheld. Depending on the nature of the bad faith conduct and the applicable legal theories, recoverable damages may include:

• The full value of the original claim that was wrongfully denied or underpaid
• The 20 percent penalty on the first $1,500 and 10 percent penalty on the remainder of the claim under the vexatious refusal statute
• Reasonable attorney’s fees under the vexatious refusal statute
• Consequential damages caused by the bad faith conduct, such as financial losses suffered while waiting for an insurance payout, additional costs incurred because of the delay, and damage to credit from unpaid bills
• Emotional distress damages caused by the insurer’s bad faith conduct
• Punitive damages where the insurer’s conduct was especially egregious, willful, or malicious

The combination of the original claim value, statutory penalties, attorney’s fees, consequential damages, and potential punitive damages means that a successful bad faith case can substantially exceed the original amount in dispute. This is intentional. Missouri’s bad faith remedies are designed to make bad faith more expensive than simply honoring the policy, thereby deterring the conduct.

Call (314) 940-8300 or email injury@stronglaw.com for a free case evaluation.

How Strong Law Handles Bad Faith Insurance Cases

Every bad faith insurance case begins with a thorough review of the policy, the claim file, and the insurer’s conduct throughout the claims process. Strong Law’s approach includes:

• Obtaining and analyzing the complete claim file, including internal claim notes, adjuster communications, and any internal guidelines or protocols that governed the handling of the claim
• Evaluating the policy language to identify all potentially applicable coverage and to identify any exclusions the insurer relied upon
• Retaining experts where necessary to establish the proper value of the underlying claim or to evaluate the adequacy of the insurer’s investigation
• Identifying every element of bad faith conduct and building a documented record of each violation
• Calculating the full damages available under the vexatious refusal statute, common law bad faith, and any applicable consequential or punitive damage theories
• Pursuing aggressive negotiation backed by the credible threat of trial and the full exposure the insurer faces under Missouri’s bad faith remedies

Frequently Asked Questions: Bad Faith Insurance Cases in Missouri

How do I know if my insurer acted in bad faith?

The key question is whether the insurer had a reasonable basis for its conduct. Denying or delaying a claim that is clearly covered, relying on policy exclusions that do not apply, failing to conduct an adequate investigation, or offering a settlement that is completely inconsistent with the documented value of the claim are all indicators of bad faith. Strong Law offers free consultations to evaluate whether your insurer’s conduct may give rise to a bad faith claim.

My claim was denied a long time ago. Can I still pursue a bad faith claim?

Missouri’s statute of limitations for breach of contract claims, which underlies most bad faith claims, is ten years. The vexatious refusal statute has its own limitations considerations. However, the specific deadline depends on the type of insurance and the nature of the claim. Contact Strong Law promptly to evaluate the timeliness of your potential claim.

My insurer is offering to pay something, just not the full amount. Is that bad faith?

Possibly. If an insurer acknowledges coverage but consistently undervalues the claim without a reasonable basis, that pattern of low offers and underpayment can constitute bad faith. The insurer does not have to deny the claim outright for Missouri’s vexatious refusal statute to apply.

I have a lawyer on the underlying personal injury case. Do I need a separate attorney for the bad faith claim?

Not necessarily, but not all personal injury attorneys are experienced in bad faith insurance law. Strong Law handles both the underlying injury case and any bad faith insurance claims that arise from the insurer’s handling of that case. This integrated approach ensures that the bad faith conduct is documented throughout the underlying case and pursued at the right time for maximum impact.

What does it cost to hire Strong Law for a bad faith case?

Nothing upfront. All bad faith insurance cases are handled on a contingency fee basis. You pay no attorney’s fees unless and until we recover compensation for you. Notably, the vexatious refusal statute also provides for recovery of attorney’s fees from the insurer, which can shift some or all of the fee obligation onto the insurance company. Your consultation is always free.

Serving St. Louis and All of Missouri

• St. Louis City and St. Louis County
• Columbia, MO
• St. Charles, MO
• The greater St. Louis metropolitan area

Not sure if we handle cases in your area? Call us. Consultations are always free.

Talk to a St. Louis Bad Faith Insurance Attorney Today

Your insurance company is not on your side. When it denies, delays, or underpays a legitimate claim, it is betting that you will not have the resources or the knowledge to fight back effectively. Strong Law, P.C. has been changing those odds for Missouri policyholders for nearly 50 years. We know Missouri’s bad faith insurance law cold, and we know how to use it to your advantage.

$7+ billion recovered. 7 nationally acclaimed trial lawyers. 99% positive reviews. No fee unless we win.

Call Strong Law, P.C. at (314) 940-8300 | injury@stronglaw.com | 5100 Daggett Ave STE B, St. Louis, MO 63110

Strong Law, P.C. | stronglaw.com | Founded 1976 | $7+ Billion Recovered