Long Term Disability Law Blog

New York has always been a regressive State for insurance claims. Not any more. On February 19, 2008, New York's highest Court issued a decision in Bi-Economy Market, Inc. v. Harleysville Ins. Co. of New York that dramatically changed the legal landscape. An insured can now assert a claim against an insurance company for violation of an implied covenant of good faith and fair dealing. Therefore, if an insured can establish that the insurance company denial was in bad faith or that there was no reasonable basis for the denial, the insured can recover not only the insurance benefits at issue, but also reasonably foreseeable damages.

This new relief will help fully compensate plaintiffs when insurance companies improperly deny their claim for benefits. It will also help deter insurance companies from inappropriately denying meritorious insurance claims in the first place.