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Bad-faith litigation has long been a contentious — and big-dollar — issue for insurers.

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Volcano sparks lawsuits. In Hawaii, if a home catches fire and is destroyed due to exposure to molten rock, it is considered fire damage, which is covered under a typical homeowners insurance policy. (Photo: Shutterstock)

In May of 2018, the Kilauea volcano erupted sending molten lava soaring over 60 meters into the air. Over time, the lava spread to cover over 12 square miles on Hawaii’s Big Island. Over 1,000 homes and other buildings were destroyed by the flowing lava. Hundreds of earthquakes and tremors rocked the island during the volcano’s eruption.

Hannah Smith

Instant InsightsBad faith liability

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