Evidence Needed to Prove an Insurance Bad Faith Claim

When an insurance company fails to uphold its end of the bargain, policyholders may have the right to file a bad faith claim. In Nevada, insurance bad faith occurs when an insurer unreasonably delays, denies, or underpays a legitimate claim without proper justification.  

Bad faith cases don’t just hinge on whether the insurer was wrong, they depend on showing that the company acted without a reasonable basis. Proving this requires specific evidence demonstrating the insurer’s conduct crossed the line. The burden of proof falls on you (the claimant), and gathering solid documentation can make or break your case.  

Understanding the kinds of evidence Nevada courts look for is the first step in holding an insurer accountable. 

Bad Faith and Nevada Law 

Nevada recognizes both first-party and third-party bad faith claims.  

• First-party claims are situations where an insurer has failed to deal fairly with its own policyholder, such as in a healthcare or auto insurance case.  

• Third-party claims happen when an insurer fails to mount a defense or offer a settlement on behalf of those they’ve insured.  

In either scenario, the core issue is the insurer’s failure to act in good faith. The law requires insurers to promptly investigate, evaluate, and communicate with their policyholders about claims. A simple mistake or denial does not constitute bad faith—there must be evidence of unreasonable behavior or intent to delay or avoid paying. 

Claim File Documentation 

The insurer’s internal claim file is one of the most important pieces of evidence in a bad faith case.  

This file contains notes, emails, and other records created by adjusters and other personnel throughout the life of the claim. It can reveal whether the insurer investigated the claim thoroughly and whether any decisions were based on valid reasons.  

Gaps in the file, contradictory notes, or signs of delay without explanation can support the argument that the insurer acted in bad faith.  

If informal efforts don’t produce results, you can request this file during litigation or through pre-lawsuit discovery processes. Courts often give weight to what’s written down while the claim is being processed, especially if it conflicts with the insurer’s later explanations. 

Communication Records 

Emails, letters, and phone records between you and the insurer are crucial to building a bad faith case. These records can show if the insurer responded promptly and whether they explained delays or denials with legitimate reasons.  

In Nevada, insurers have a duty to communicate openly and provide policyholders with meaningful updates. If the insurer repeatedly ignored inquiries or gave misleading information, those patterns can strengthen the claim. It also helps to show that the claimant made reasonable efforts to cooperate and provide the requested documents.  

A pattern of silence, vague answers, or shifting justifications often signals a deeper issue with how the claim was handled. 

Expert Testimony 

In some bad faith claims, expert testimony helps explain how the insurer’s behavior departed from industry standards.  

Insurance practice experts can testify about what a reasonable insurer would have done under the same circumstances. They can also analyze the claim file and communication records to highlight red flags. Nevada courts allow this kind of testimony when it helps the jury understand technical issues like how claims are typically evaluated or what constitutes a prompt investigation.  

While expert opinions can’t replace the need for documentation and records of communication, they do add credibility and clarity, especially in complex or technical cases. 

The Insurance Policy Itself 

The actual language of the insurance policy also plays a major role in proving bad faith. The policy outlines what coverage is available, what exclusions apply, and how claims should be processed.  

When an insurer denies a claim or limits coverage, its interpretation of the policy must be reasonable.  

If the denial contradicts the contract’s plain language or ignores relevant clauses, that inconsistency can suggest bad faith. Claimants need to compare the insurer’s actions to the promises made in the policy. If the insurer refused to pay a clearly covered claim, that evidence supports the argument that the company acted unreasonably. 

Evidence of Economic or Emotional Harm 

To win a bad faith case, it also helps if you can show how the insurer’s conduct caused you real harm.  

This might include financial losses from unpaid bills, damaged credit, or foreclosure due to a delayed claim. It could also involve emotional distress from prolonged uncertainty, repeated delays, or the stress of dealing with evasive or difficult insurance representatives.  

Courts may award damages for emotional distress if the claimant can show that the insurer’s behavior caused more than a minor inconvenience. Medical records, therapist notes, or witness testimony can help establish these effects and increase the claim’s value. 

Proving an insurance bad faith claim in Nevada means you’ll need a combination of clear documentation, expert testimony, and the willingness to go the distance for justice. Insurers often have powerful legal teams and rarely admit fault without pressure.  

That’s why gathering thorough evidence from the start is so important. The goal is not just to show that the claim was denied or delayed, but that the insurer acted without a valid reason, violating its duty to deal fairly and honestly.  

With strong evidence and a clear presentation of facts, our experienced bad faith attorneys at the Law Office of Matthew L. Sharp can help you hold insurance companies accountable and seek maximum compensation for the harm they’ve caused you.