Bad Faith Insurance

Orange County Bad Faith Insurance Lawyer

Did Your Insurance Company Refuse to Pay Your Claim? 

Insurance companies are supposed to put their policyholders first, but it’s no secret that making money tends to be their top priority. 

From a policyholder’s perspective, this can be extremely frustrating. People rely on insurance to get them through tough times—that’s the whole point of having insurance in the first place. It can feel like the ultimate betrayal to have an insurance company wrongfully deny your claim, especially if you’re a long-time policyholder. You always pay your monthly premium, and now your provider isn’t keeping up their end of the deal.

If you have reason to believe that your insurance provider processed your claim in bad faith, you may be able to take legal action. At Sexual Harassment Employment Attorneys, our attorneys help Southern Californians hold greedy insurance providers accountable. From our office in Orange County, we serve clients in RiversideLos Angeles, San Diego, and nearby counties.

Give us a call at (888) 427-8064 today for a free consultation!

What Is Bad Faith in Insurance Law?

Bad faith insurance is when an insurance company refuses to pay a valid claim. An insurance agent or adjuster may do this in a variety of ways.

A few common ways in which insurance companies act in bad faith include:

  • Denying a valid claim
  • Adding on illegitimate deductions (lowering a claim’s value)
  • Failing to thoroughly investigate a claim
  • Requesting unnecessary paperwork
  • Cherry-picking facts to blame the policyholder
  • Pressuring policyholders into taking unfairly low settlements
  • Making sudden changes to a policy
  • Delaying communication
  • Delaying payments

Insurance companies want to make money. They are for-profit businesses, after all.

How Do You Know If You Have a Bad Faith Claim?

Many people have become used to the idea that their insurance provider will add on needless deductions. The unfortunate thing is that many people don’t know they can do something about it. 

Per California law, insurance providers have several duties to their policyholders:

  • Duty to investigate: Providers must investigate claims properly and in a timely manner. 
  • Duty to fairly process a claim: This goes hand in hand with the duty to investigate, as providers must process a claim as quickly and efficiently as possible. They must do so fairly and without trying to cheat the policyholder out of money.
  • Duty to pay out a valid claim: Providers must pay out an approved, valid claim on time. They are not supposed to delay payments or make it hard for the policyholder to collect their money.
  • Duty to defend: Providers must defend their policyholders in the event that someone sues them. For example, an auto insurance company would need to defend a policyholder/driver who struck a bicyclist and now finds himself the subject of a personal injury lawsuit
  • Duty to indemnify: “Indemnify” is a fancy way of saying “compensate.” This duty also applies when one person sues a policyholder. The provider must pay out the settlement or verdict on their policyholder’s behalf. 
  • Duty to settle reasonably: Again, this has to do with defending their policyholders in court. Providers must settle when it would benefit their policyholders. They are not legally allowed to put off settling in the hopes that they could save money the longer they wait.

When a provider acts outside or against these duties, it’s considered bad faith and provides grounds for a lawsuit.

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Our Settlements & Verdicts

  • Childhood Sexual Abuse $6,050,000
  • Childhood Sexual Abuse $6,000,000
  • Employer Breach of Employment Contract $92,500
  • Employer Breach of Employment Contract $80,000
  • Employer Failure to Accommodate Medical Condition $190,000
  • Employer Failure to Accommodate Medical Condition $155,000

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