A landmark ruling in New York has clarified that insurers can be held liable for bad faith even when dealing with third-party claims, not just direct policyholder disputes. The decision expands the scope of accountability for insurers accused of unreasonable denial or delay in processing claims involving others, such as subrogation or liability cases. Legal experts suggest this could reshape how insurers handle third-party claims to avoid costly litigation. The ruling underscores the growing emphasis on transparency and fairness in the insurance industry’s obligations beyond its policyholders.
New York Law Confirms Insurer Liability for Bad Faith Includes Third-Party Claims insurancejournal.com
