Insurance policies are meant to provide protection when something goes wrong. Yet in many cases, insurers delay, deny, or undervalue legitimate claims—placing financial strain on injured plaintiffs when they are most vulnerable. When an insurer’s conduct crosses legal lines, plaintiffs may pursue insurance bad faith litigation.

Bad faith cases are often complex, hard-fought, and time-consuming. During this prolonged process, pre-settlement funding can provide essential financial stability, allowing plaintiffs and their attorneys to pursue accountability without being forced into unfair compromises.

What Is Insurance Bad Faith?

Insurance bad faith occurs when an insurer fails to handle a claim fairly, honestly, and in good faith. This may include:

• Unreasonable delays in claim processing

• Wrongful denial of valid claims

• Lowball settlement offers without justification

• Failure to investigate properly

• Misrepresenting policy terms

• Ignoring evidence supporting coverage

• Refusing to defend or indemnify when required

Bad faith claims may arise in auto accidents, personal injury cases, property damage claims, uninsured/underinsured motorist disputes, and more.

Why Bad Faith Cases Take Longer to Resolve

Insurance bad faith litigation is rarely straightforward. These cases often involve:

• Detailed review of policy language

• Extensive discovery of insurer internal practices

• Depositions of claims adjusters and supervisors

• Expert testimony on industry standards

• Motions challenging insurer conduct

• Aggressive defense strategies

Insurers fight these cases hard because bad faith findings can expose them to damages beyond the original policy limits.

The Financial Pressure Plaintiffs Face

While litigation unfolds, plaintiffs often deal with:

• Ongoing medical expenses

• Lost income or reduced earning capacity

• Property damage or unreimbursed losses

• Mounting household bills

• Delays in receiving benefits that should have been paid

Ironically, the very conduct that leads to a bad faith claim often causes the financial distress that pressures plaintiffs to settle early.

How Pre-Settlement Funding Helps in Bad Faith Litigation

Pre-settlement funding provides a non-recourse cash advance based on the anticipated outcome of the case. This means:

• You receive funds before the case resolves

• Repayment occurs only if the case wins or settles

• There are no monthly payments

• If the case is unsuccessful, nothing is owed

Funding helps plaintiffs remain financially stable while challenging improper insurer behavior.

Common Uses of Funding in Bad Faith Cases

Plaintiffs involved in bad faith litigation often use funding to cover:

• Rent or mortgage payments

• Utilities and household expenses

• Medical treatment and co-pays

• Transportation and daily living costs

• Lost income due to delayed benefits

• Legal-related living expenses during litigation

Funding removes the urgency that insurers rely on to force discounted settlements.

Why Funding Strengthens Bad Faith Claims

Financial stability allows plaintiffs to:

• Resist low settlement offers tied to policy limits

• Allow attorneys time to uncover internal insurer misconduct

• Pursue full damages available under bad faith statutes

• Avoid accepting unfair compromises just to survive financially

Without funding, insurers often hold the leverage. Funding helps restore balance.

Special Considerations in Bad Faith Funding

Because bad faith cases may involve layered damages, funding providers evaluate:

• The underlying claim value

• Policy limits and coverage disputes

• Strength of evidence showing bad faith conduct

• Attorney assessment of recoverability

• Potential statutory or punitive damages

Responsible funding ensures advances align with realistic recovery expectations.

Why Plaintiffs Trust Instabridge in Bad Faith Cases

Instabridge understands the complexity of insurance bad faith litigation. We offer:

• Case-specific evaluations

• Transparent, flat-rate pricing with no compounding interest

• Non-recourse funding protection

• Attorney coordination throughout the case

• Responsible funding limits to protect final recovery

We support plaintiffs while insurers are held accountable.

Conclusion: Financial Stability While Challenging Insurer Misconduct

Insurance bad faith litigation is about fairness, accountability, and enforcing the promises insurers make to policyholders. Pre-settlement funding from Instabridge helps plaintiffs stay financially secure while pursuing justice—without giving insurers the leverage they seek through delay and denial.

If you’re involved in an insurance bad faith case and facing financial pressure during prolonged litigation, contact Instabridge today. We’ll help you bridge the gap responsibly while your case moves forward.