First-Party Versus Third-Party Bad Faith: Which One Are You?
Last updated on February 18, 2026
There are many types of insurance disputes, and it is important to know how they work and what legal options you have. One key distinction is between a third-party bad-faith insurance claim and issues regarding first-party bad faith in Wisconsin.
This can be complicated, but we are here to help at MGW Law. When working with us, you get a Wisconsin insurance bad faith attorney from a firm with over 50 years of combined experience and over $40 million recovered. We are a local firm that truly cares about every client, offering face-to-face consultations. We should be the first place you call for an MGW Law insurance dispute.
Who Is The “Party” In A Lawsuit?
A first-party claim involves you versus your own insurance company, such as if they have offered a lowball settlement, created unreasonable delays or wrongfully denied your property claims. A third-party bad faith scenario involves a failure to defend against another party, independent of the insurance company. Common issues include excess judgments or a failure to settle within policy limits.
An Insurance Company’s Legal Duty
When suing an insurance company in Wisconsin, remember that insurers have a duty to act in good faith and to deal fairly with their clients. This does not mean they have to approve every claim, but they must treat you correctly and legally. They cannot ignore your communications, create unreasonable delays, intentionally authorize payouts that are far lower than you deserve or take other steps to undercut the duty they have under the contractual agreement of the insurance policy.
What Damages Can You Recover?
Whether it is a denied homeowners insurance claim or another issue, we help you determine exactly what damages you can recover. This can include contract damages or losses that you suffered because the contract was not properly honored, along with punitive damages, which are sometimes ordered by the court to punish the other party for wrongdoing.
Call For A Consultation
To meet with an experienced insurance dispute attorney in Wisconsin, just dial 920-383-3911 or use the online contact form to set up your face-to-face consultation with our team.