Las Vegas Bad Faith Insurance Claim Lawyer: What Is a Bad Faith Insurance Claim in Nevada?
Key Takeaways
- Nevada’s Unfair Claims Settlement Practices Act (NRS 686A.310) prohibits insurance companies from delaying, denying, or underpaying valid claims—and gives you the right to sue your own insurer for damages if they violate it.
- Bad faith claims in Nevada apply only to first-party claims (against your own insurance company), and there is no cap on punitive damages when an insurer acts with fraud, malice, or oppression.
- Documenting every interaction with your insurance company—emails, letters, phone calls, and adjuster conversations—is one of the most important steps in building a successful bad faith case.
You pay your insurance premiums every month expecting your insurer to be there when you need them most. But after an car accident, you may find yourself dealing with something far worse than the injury itself—an insurance company that refuses to treat your claim fairly.
If your insurer has denied your claim without a clear reason, dragged out the process for months, or offered you far less than your losses are worth, you may be dealing with what’s known as insurance bad faith. Nevada law provides strong protections against these practices, and the Richard Harris Law Firm has been holding insurance companies accountable for our clients since 1980.
What Is a Bad Faith Insurance Claim?
A bad faith insurance claim arises when your own insurance company unreasonably denies, delays, or underpays a valid claim covered by your policy. Under Nevada law, every insurance contract carries an implied obligation of good faith and fair dealing—and when an insurer violates that duty, you have the right to sue for damages beyond your original claim, including punitive damages with no cap.
How Does Nevada Define Insurance Bad Faith?
At its core, insurance bad faith means your insurer isn’t playing by the rules. Every insurance policy in Nevada is a contract, and every contract carries what’s legally called an “implied covenant of good faith and fair dealing.” This means your insurance company must handle your claim honestly, investigate it thoroughly, and pay what it owes within a reasonable timeframe.
When an insurer fails to meet these obligations, Nevada provides two legal paths to hold them accountable:
Acting in bad faith: You can file a claim showing that your insurer denied benefits while knowing—or when they should have known—there was no reasonable basis for the denial. This is rooted in the contractual relationship between you and your insurer.
Statutory violations under NRS 686A.310: Nevada’s Unfair Claims Settlement Practices Act spells out specific prohibited behaviors. If your insurer engages in any of these unfair practices, you can sue them directly for damages. Some of the most common violations include:
- Misrepresenting policy provisions: Twisting the language of your policy to justify a denial or reduced payout
- Failing to investigate promptly: Not adopting reasonable standards for processing your claim in a timely manner
- Unreasonable denial of coverage: Refusing to affirm or deny your claim within a reasonable time after you’ve submitted proof of loss
- Lowball settlement offers: Offering substantially less than what your claim is worth to pressure you into accepting less than you deserve
- Delaying payment on valid claims: Using stall tactics—like requesting the same documents repeatedly—to drag out the process
- Advising you not to seek legal counsel: Discouraging you from consulting with an attorney about your claim
One critical distinction to understand: Nevada only recognizes bad faith claims against your own insurance company (first-party claims). You generally can’t bring a bad faith claim against another person’s insurer, because there’s no contractual relationship between you and a third-party insurance company. However, the third-party insurer may still face regulatory consequences if you file a complaint with the Nevada Division of Insurance .
How Do You Prove an Insurance Company Acted in Bad Faith?
Proving bad faith requires more than just feeling like your insurer treated you unfairly. You need to establish specific legal elements that show your insurer acted unreasonably and knew—or should have known—that their conduct lacked a reasonable basis.
To build a successful bad faith case in Nevada, you’ll typically need to prove four things:
- A valid insurance contract exists: You have an active policy with the insurer in question.
- Your claim is a covered loss: The damages you’re claiming fall within the terms of your policy.
- The insurer was obligated to act in good faith: This is implied in every Nevada insurance contract.
- The insurer breached that duty: They denied, delayed, or underpaid your claim without a reasonable basis—and they knew or should have known their conduct was unreasonable.
It’s important to note that a simple disagreement over the value of your claim doesn’t automatically constitute bad faith. An insurer can deny a claim in good faith if they have a legitimate reason. What crosses the line is when the denial or delay lacks any reasonable justification.
Evidence That Strengthens a Bad Faith Case
Documentation is the foundation of any bad faith claim. The more records you keep, the stronger your case becomes. Key evidence includes:
- Written correspondence: Save every email, letter, and text message between you and your insurer
- Phone call records: Log the date, time, duration, and a summary of what was discussed—including the name of every representative you speak with
- Claim documents: Keep copies of your policy, proof of loss forms, medical bills, repair estimates, and any other documentation you’ve submitted
- Timeline of events: Track how long your insurer takes to respond at each stage, as delays can reveal a pattern of bad faith behavior
Nevada’s Required Insurer Response Timelines
Nevada law sets clear deadlines for how quickly insurers must act on your claim. For auto and casualty insurance claims, NRS 690B.012 establishes specific response windows. If your insurer misses these without explanation, it may support a bad faith argument:
| Stage | Required Timeframe |
|---|---|
| Acknowledge receipt of claim (or request additional info/time) | 20 days |
| Investigate and accept or deny claim (after receiving proof of loss) | 30 days |
| Issue payment (after claim is approved) | 30 days |
| Extension (if more time needed) | 30-day increments with written notice to you |
If your insurer is making lowball offers, repeatedly asking for the same paperwork, or simply not responding to your calls—these are red flags that something isn’t right. Consider speaking with an attorney before giving a recorded statement or accepting any offer.
What Damages Can You Recover From a Bad Faith Claim in Nevada?
If you can prove that your insurer acted in bad faith, Nevada law allows you to recover damages that go well beyond the value of your original insurance claim. This is an important distinction—bad faith isn’t just about getting what you were originally owed. It’s about holding the insurer accountable for the additional harm their misconduct caused.
| Damage Type | What It Covers |
|---|---|
| Original claim value | The full amount your insurer should have paid under the policy |
| Out-of-pocket expenses | Costs you incurred because the insurer failed to pay—such as lost wages, additional medical bills, or interest on debts |
| Emotional distress | Compensation for the stress, anxiety, and mental anguish caused by the insurer’s bad faith conduct |
| Attorney’s fees | Legal costs incurred to enforce the policy and pursue the bad faith claim |
| Punitive damages | Additional damages designed to punish the insurer—available when the insurer acted with fraud, malice, or oppression under NRS 42.005 |
One of the most significant aspects of Nevada’s bad faith law is that there is no cap on punitive damages in insurance bad faith cases. In many other types of Nevada lawsuits, punitive damages are limited to three times the compensatory damages. But for bad faith insurance claims, the courts have removed that restriction—meaning an insurer that engaged in particularly egregious conduct could face substantial financial consequences.
Every case is different, and the amount you may recover depends on the specific facts of your situation. Results vary based on the circumstances of each case, and past outcomes don’t guarantee future results.
Why You Need a Bad Faith Insurance Attorney on Your Side
Taking on an insurance company without legal representation is an uphill battle. Insurers have dedicated claims departments, in-house legal teams, and decades of experience minimizing payouts. A skilled bad faith insurance attorney levels the playing field.
Nevada law expertise: Bad faith claims involve both common law and statutory violations under NRS 686A.310. An experienced attorney understands how to build a case under both legal theories and which approach gives you the strongest position.
Evidence gathering: Your attorney can use Nevada’s rules of civil procedure to conduct formal discovery—subpoenaing the insurer’s internal communications, claim files, and adjuster notes that you wouldn’t be able to access on your own. This internal documentation often reveals the true reasons behind a denial or delay.
Negotiation leverage: Insurance companies take claims more seriously when an attorney is involved. Adjusters know that a represented claimant is far more likely to pursue litigation if a fair settlement isn’t reached.
Trial readiness: If negotiations don’t produce a fair result, your attorney can take the case to court. Having a legal team that’s prepared to go to trial gives you significant leverage—even during settlement discussions.
The Richard Harris Law Firm works on a contingency fee basis, which means you pay no upfront costs. Our fees are contingent on the outcome of your case—we only get paid if you do.
Dealing With a Bad Faith Insurance Claim? We Can Help
You shouldn’t have to fight your own insurance company to receive the benefits you’ve been paying for. If your insurer has denied your claim without a valid reason, delayed the process beyond reasonable timelines, or offered you far less than your losses are worth, you may have a bad faith claim under Nevada law.
The Richard Harris Law Firm has been protecting the rights of accident victims in Nevada since 1980. Our attorneys understand the tactics insurers use, and we know how to evaluate whether a settlement offer reflects the true value of your claim. Don’t let an insurance company take advantage of you—contact us today for a free consultation.
Frequently Asked Questions
What Is Considered Bad Faith by an Insurance Company in Nevada?
Under NRS 686A.310, bad faith includes practices like unreasonably denying a valid claim, failing to investigate promptly, misrepresenting your policy terms, offering far less than a claim is worth, and delaying payment without justification. Any conduct where an insurer knowingly acts without a reasonable basis for denying or underpaying your claim may qualify as bad faith.
What Is the Statute of Limitations for a Bad Faith Insurance Claim in Nevada?
Most bad faith insurance claims in Nevada are subject to a four-year statute of limitations. However, some courts have held that the standard contractual suit limitation periods don’t apply to bad faith claims because the obligation of good faith arises from law, not from the contract itself. Because exceptions and case-specific factors can affect your deadline, it’s important to consult with an attorney as soon as you suspect bad faith.
Can I Sue a Third-Party Insurance Company for Bad Faith in Nevada?
Generally, no. Nevada law only recognizes bad faith claims between a policyholder and their own insurance company (first-party claims). Because there’s no contractual relationship between you and another person’s insurer, you can’t bring a bad faith lawsuit against a third-party company. However, you can file a complaint with the Nevada Division of Insurance if you believe a third-party insurer is engaging in unfair practices.
How Much Is a Bad Faith Insurance Claim Worth in Nevada?
The value of a bad faith claim depends on the facts of your case. Recoverable damages can include the original claim amount, out-of-pocket expenses, emotional distress, and attorney’s fees. In cases involving fraud, malice, or oppression, Nevada courts can also award punitive damages—and unlike most other Nevada lawsuits, there is no cap on punitive damages in bad faith insurance cases.
What Should I Do if My Insurance Company Is Acting in Bad Faith?
Start by documenting everything—save all written communications, log phone calls with dates and names, and keep copies of every document you submit to your insurer. Don’t accept a lowball offer or sign anything without understanding your rights. Then, contact an experienced bad faith insurance attorney who can review your situation and determine whether your insurer’s conduct violates Nevada law.
