When businesses or individuals in Las Vegas suffer serious financial losses due to accidents, negligence, or misconduct, insurance is expected to cushion the blow. But what happens when the insurance policy limits are too low to cover the damages? How do the business torts in Vegas with low limit insurance work?
For many injured parties, the answer lies in pursuing additional recovery through business torts and legal actions against insurers and third parties. In Nevada, these lawsuits often involve complex questions of bad faith, negligence, and financial losses far exceeding policy caps.
This guide explains how to seek recovery beyond insurance limits, including how to use Nevada law to bring a bad faith claim or business tort lawsuit.
What Are Business Torts?
Business torts are civil wrongs that cause financial harm to a business or individual. Unlike breach of contract, they arise from wrongful conduct—either intentional or negligent—that impacts someone’s economic or commercial interests.
In Nevada, business torts may be pursued alongside or in addition to insurance claims when insurance coverage falls short.
Common Business Torts Include:
If you want to challenge the Nevada court system or the insurance industry, you need to know the common business torts. Any reasonable person who understands them can use the Nevada legislature to file a case.
1. Fraud and Misrepresentation
Fraud occurs when a party knowingly makes false statements to induce another to act, typically resulting in financial loss. For example, an insurance company may misrepresent coverage or delay payments to avoid a valid insurance claim.
Nevada courts recognize this as grounds for a business tort claim. If proven, it can lead to recovery of damages plus punitive damages for the deception, especially when harm was intentional and caused prolonged hardship to the aggrieved party.
2. Negligent Misstatement
This occurs when false information is provided without intent to deceive, but in a context where there was a legal duty to provide accurate details.
For example, if an insurance carrier underwrites a policy incorrectly or miscommunicates policy limits, it may be liable if the error causes financial losses.
Businesses relying on this information to make decisions can sue for damages sustained due to the misstatement, especially when there was no reasonable basis for the misinformation.
3. Bad Faith by Insurance Companies
A frequent type of business tort in Nevada involves bad faith claims against insurance providers. These arise when insurers fail to pay legitimate claims, delay investigations, or deny coverage without proper justification. So, what does the bad faith law say?
Nevada law requires insurers to act in good faith and to fairly consider claims. When they don’t, policyholders can file lawsuits to recover the full loss—including excess damages, attorneys’ fees, and even punitive damages—to deter further misconduct.
In other cases, a specific statute can provide coverage and protect from false imprisonment as a result of bad faith cases.
Low Limit Insurance and Its Consequences
In Las Vegas, many business and personal policies offer minimal protection. Nevada law requires minimum insurance standards, but these often fall far short in cases involving serious injury or economic harm.
Real Risks of Low Policy Limits
1. Car Accidents
Nevada drivers are only required to carry liability insurance of $25,000 per person and $50,000 per accident. That amount is quickly exhausted in personal injury cases involving medical expenses, lost income, and emotional distress. Once the limit is met, injured parties must seek the remainder from the at-fault driver or their assets.
2. Business Property Damage
A business may only have $100,000 in property coverage, but a fire or theft can easily cause double or triple that amount in losses. If the insurer refuses to fully honor the insurance policy, the business may have to sue to recover the shortfall or pursue a bad faith action.
3. Medical Malpractice or Life Insurance
In healthcare or wrongful death claims, health insurance or life insurance may exclude certain treatments or deny payment unjustly. In some cases, this may constitute bad faith or fraud, particularly when claimants are misled or founding partners are deprived of critical coverage.
When Insurance Fails: What Is Insurance Bad Faith?
Understanding Insurance Bad Faith
Bad faith occurs when an insurance company violates its duty to handle claims fairly and promptly. Under Nevada law, insurers must act with a reasonable basis when denying or delaying a claim. If an insurer unreasonably refuses to pay, provides false information, or engages in stalling tactics, they may be liable for more than just the value of the policy.
Examples of Bad Faith
- Refusing to defend a policyholder in a lawsuit without cause
- Failing to investigate or evaluate claims properly
- Misrepresenting policy terms or coverage limitations
- Coercing or misleading policyholders into accepting low settlements
Victims of bad faith can sue not only for unpaid benefits but also for additional damages, including legal costs, emotional distress, and in extreme cases, punitive damages to punish the insurer for misconduct.
Nevada Law on Insurance Bad Faith
Under Nevada Revised Statutes (NRS 686A.310) and common law, insurance carriers have a statutory obligation to handle claims in good faith. This includes:
- Prompt investigation and processing of claims
- Transparent communication about policy coverage
- Settlement offers that reflect the reasonable value of the claim
If an insurance company breaches these duties, injured parties can file bad faith claims seeking full reimbursement of the claim, plus damages sustained due to delay or denial.
Legal Options When Insurance Limits Are Too Low
1. Sue the Tortfeasor Personally
When an insurance policy doesn’t fully cover your damages, you can sue the at-fault business or individual for the difference. For example, if a driver causes a total loss valued at $100,000 but their insurance only pays $25,000, you can pursue the remaining $75,000 directly.
This option involves proving negligence, collecting evidence, and potentially engaging in court proceedings. Success often depends on whether the defendant has the assets or income to satisfy a judgment.
2. File a Bad Faith Lawsuit Against the Insurer
If the insurance company acted unfairly or maliciously in handling your claim, a bad faith lawsuit can allow you to recover more than the policy limit. These lawsuits argue that the insurer failed its legal duty to act in good faith, misled the claimant, or failed to investigate properly.
Plaintiffs may be awarded compensation for all related costs, including unpaid claims, attorney fees, and emotional or financial harm resulting from the delay.
3. Pursue Third-Party Liability Claims
If another party shares blame, you can bring a claim against them to fill the gap left by low-limit insurance. For example, a vendor, subcontractor, or even a product manufacturer may bear legal responsibility for part of your injury or loss.
This helps expand potential avenues for recovery, especially in business tort cases where multiple actors contributed to your damages sustained. Your legal team will examine contracts, business relationships, and incident reports to identify viable targets.
4. Seek Joint and Several Liability
Nevada courts allow for joint and several liability in cases involving multiple defendants. This means that if more than one party is found liable, any one of them can be required to pay the full judgment.
This rule protects injured parties when some defendants are uninsured or underinsured. By pursuing this theory, you can still receive full compensation, even if some insurers only cover a portion of the total damages.
5. Claim Supplemental Damages for Fraud or Intentional Acts
If the responsible party or insurance company committed fraud, manipulated documents, or engaged in intentional misconduct, you may be entitled to additional damages beyond the policy limit. Courts are especially harsh on fraudulent behavior and often award punitive damages to deter such conduct.
These cases involve gathering proof—such as internal emails, altered contracts, or expert testimony—to show the misconduct was deliberate and harmful.
The Litigation Process in Nevada
Bringing a business tort or bad faith claim in Nevada involves several key steps:
- Investigation and review of your insurance policy
- Filing the lawsuit within applicable deadlines under Nevada statute
- Discovery of documents, financial records, and communications
- Negotiation or mediation with the insurance company or at-fault party
- Court trial if a settlement is not reached
These steps require meticulous documentation and an understanding of both state and federal law, especially if the insurer is headquartered out of state.
Business Torts in Vegas with Low-limit Insurance: Recovering Shortfalls with Lawyers
Handling low-limit insurance claims and business torts requires more than basic legal knowledge. An experienced attorney will:
- Identify every liable party
- Locate excess and umbrella insurance policies
- Spot signs of bad faith or fraud
- Use discovery to strengthen your case
- Pursue punitive damages when appropriate
With business torts in Vegas with low-limit policies, the stakes are high, and mistakes can cost you the ability to fully recover your losses. Here’s a quick guide to tort cases in Nevada to further explain it to you.
Free Consultation and What to Expect
Most law firms, including the Bourassa Law Group, offer a free consultation for clients facing insurance or business-related disputes. During this initial meeting, we:
- Review your existing insurance claim and policy
- Evaluate the conduct of the insurance company
- Explain timelines, costs, and potential outcomes
- Build a strategy to maximize recovery
This first step often uncovers additional coverage, liable parties, or acts of bad faith that can drastically change the course of your case.
Bottom Line
If you’ve suffered financial losses due to low-limit insurance, bad faith, or business torts in Las Vegas, we’re here to help. At Bourassa Law Group, our experienced litigators know the insurance and business landscape of Nevada and are skilled in handling complex, high-stakes cases.
Contact Bourassa Law Group
We’ve recovered millions for clients who were initially told they’d reached their policy limits. If you’re facing a claim denial, an unfair settlement, or feel your insurer hasn’t acted in good faith, contact us today.
Get your free consultation now with Bourassa Law Group for business torts in Vegas. Let’s work together to recover what you’re truly owed, above and beyond insurance limitations.
1-800-870-8910