In many insurance coverage disputes, an insured that brings a claim for breach of the insurance contract also claims breach of the implied covenant of good faith and fair dealing.
Claims for Breach of Implied Covenant of Good Faith and Fair Dealing: Viability Typically Depends on Success of Breach of Contract Claim
In many insurance coverage disputes, an insured that brings a claim for breach of the insurance contract also claims breach of the implied covenant of good faith and fair dealing. The carrier then must determine how to successfully defend both claims. The strategy employed in defending those claims must take into consideration the nuances of a claim for breach of the implied covenant of good faith and fair dealing. In most jurisdictions, the best strategy may be to focus on defeating the contract claim, because the dismissal of the contract claim typically extinguishes any claim of breach of the implied covenant of good faith and fair dealing.
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