Why the first number is rarely the real number
Insurance adjusters routinely open negotiations with a conservative figure, expecting a counteroffer. Accepting that first offer typically closes the claim permanently — there's generally no going back to ask for more later, even if additional injuries or costs surface afterward.
A real claim, grounded in contract rather than tort
Delaware recognizes a cause of action against an insurer for bad faith, but it's built differently than in many states. In Tackett v. State Farm Fire & Casualty Insurance Co., 653 A.2d 254 (Del. 1995), the Delaware Supreme Court held that a first-party bad faith claim arises from the implied covenant of good faith and fair dealing underlying the insurance contract itself — a contract claim, not an independent tort.
The standard: "clearly without any reasonable justification"
Under Tackett, an insurer breaches its duty when it fails to investigate or process a claim, or delays payment, in a way that is "clearly without any reasonable justification." That's a real bar — an ordinary, good-faith dispute over the value or validity of a claim generally doesn't meet it, but an outright unreasonable denial or delay can.
Punitive damages are still possible, with a higher showing
Even though the claim sounds in contract, punitive damages remain available in genuinely egregious cases — where the insurer's conduct is "outrageous," due to evil motive or reckless indifference to the insured's rights. Delaware imposes no statutory cap on punitive damages in these cases, consistent with its broader no-cap approach to damages generally.
What this means practically
The real takeaway is that Delaware's framework rewards a documented, well-supported claim: because the contract-based standard asks whether the insurer's conduct had any reasonable justification, a clear paper trail showing your damages and the insurer's response to them is exactly the kind of record that matters if a dispute escalates. Comparing the insurer's offer against your own complete tally of damages before responding is the practical step this framework supports.