Wells v. Nationwide Agribusiness Insurance Company

This case arose from a dispute over coverage for a Kentucky farm owned by John Wells. After a severe winter storm in early 2025 caused extensive damage to barns and equipment, Wells filed a claim with Nationwide Agribusiness. The insurer partially denied the claim, citing a “wind and hail” exclusion and alleging the policyholder failed to mitigate damages. Wells sued, asserting breach of contract and bad faith denial. On February 12, 2026, the U.S. District Court rendered a verdict, focusing on ambiguous policy language and the insurer’s investigation conduct.

The jury found Nationwide Agribusiness liable for bad faith and breach of contract, awarding $450,000 in actual damages and $2 million in punitive damages.

Whether the winter storm damage fell within the policy’s covered perils, the applicability of the exclusion clause, and whether the insurer’s denial constituted bad faith.

The decision prompted widespread review of ambiguous policy terms in agricultural insurance, leading several insurers to revise exclusions and strengthen good-faith claim handling practices to better protect policyholders.