Who can sue for insurance bad faith?

Anyone who is covered under a particular insurance policy may sue if the insurance company acts in bad faith. This includes anyone named on the policy. Additionally, some insurance policies cover unnamed persons, who are known as “additional insureds.” For example, some automobile insurance covers any licensed driver you allow to use your car. If the driver is involved in an accident, the insurance company must cover the accident. If it doesn’t, the unnamed driver has the right to sue the company.