What to Do When Your Insurance Company Won't Defend You
If your insurance company refuses to defend you in a lawsuit in Washington State, it can leave you facing overwhelming legal costs and uncertainty. Searches like "insurance company won't defend Washington state" or "bad faith refusal to defend WA" often arise when policyholders expect coverage but get denied. Under Washington law, insurers have a broad duty to defend if there's any potential for coverage, and failing to do so without reason constitutes bad faith. As a plaintiffs attorney specializing in insurance bad faith cases in Washington, we help clients challenge these refusals, recovering defense costs, damages, and more under common law bad faith and the Insurance Fair Conduct Act (IFCA, RCW 48.30.015). This guide outlines what to do when your insurer won't defend you and the legal ramifications.
In 2025, with increasing litigation over coverage disputes, knowing your rights can prevent financial ruin—act quickly to protect them.
Understanding the Duty to Defend in Washington Insurance Law
Washington insurers must defend policyholders against claims that could potentially be covered, based on the "eight corners rule"—examining only the policy and complaint. Refusal without a reasonable basis is bad faith, where wrongful failure estops the insurer from denying coverage later. This applies to liability policies, where the duty to defend is broader than the duty to indemnify.
Common reasons insurers refuse: policy exclusions, late notice, or alleged fraud—but if unreasonable, you can sue for bad faith.
Steps to Take When Your Insurance Company Refuses to Defend You
Don't panic—Washington law favors policyholders. Follow these steps:
Review the Denial Letter Thoroughly - Insurers must provide written reasons (WAC 284-30-380); note policy citations and deadlines. If vague or untimely, it could indicate bad faith.
Document Everything - Gather policy documents, correspondence, and lawsuit details. This builds your case for bad faith.
Demand Defense in Writing - Formally tender the defense again, citing the duty to defend. If refused, this strengthens your claim.
Hire Independent Counsel - Proceed with your own lawyer; the insurer may later reimburse if bad faith is proven.
Consider Filing a Complaint with the Washington Office of the Insurance Commissioner (OIC) - Reporting unfair practices to the OIC (insurance.wa.gov or 1-800-562-6900) may lead to investigation and can compel action.
Consult a Bad Faith Insurance Attorney - An expert can evaluate for bad faith and file suit under IFCA, sending a 20-day notice before proceeding.
Pursue a Bad Faith Lawsuit - If refusal is unreasonable, sue for breach, recovering defense costs, judgments, treble damages, and fees.
Ramifications for Insurers Who Fail to Defend in Washington
Consequences are severe:
Estoppel - Insurers can't deny coverage later, liable for full judgments.
Bad Faith Damages - Treble damages, attorney fees, and extracontractual losses under IFCA.
Excess Liability - Bound by settlements or judgments beyond policy limits.
These deter misconduct but require strong legal action.
Protect Yourself: Contact a Washington Bad Faith Insurance Lawyer Today
When your insurance company won't defend you in Washington state, swift action can turn the tide. At Hogue Law Firm, we challenge refusals and pursue bad faith claims statewide.
Schedule a free consultation—call 509-934-1998 or fill out our online form. Secure the defense you deserve.