Insurance Bad Faith
Insurance policies are designed to provide financial protection during difficult times. When individuals purchase insurance coverage, they expect their insurance company to handle claims fairly and in good faith. Unfortunately, some insurance companies place profits above policyholders and attempt to delay, deny, or undervalue legitimate claims.
At TheObiz Law Office, we represent individuals and businesses throughout Los Angeles County and Riverside County who have been treated unfairly by their insurance companies. Our firm understands the tactics insurers sometimes use to avoid paying valid claims, and we are committed to holding them accountable when they fail to act in good faith.
If your insurance company has wrongfully denied or delayed your claim, you may have the right to pursue legal action.
What Is Insurance Bad Faith?
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Insurance companies have a legal obligation to act in good faith when handling claims submitted by policyholders. This means they must evaluate claims honestly, investigate them properly, and pay valid claims in a timely manner.
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Insurance bad faith occurs when an insurance company violates this duty and fails to treat the policyholder fairly.
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Examples of insurance bad faith may include:
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Unreasonably denying a valid claim
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Delaying claim investigations or payments without justification
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Failing to properly investigate a claim
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Misrepresenting the terms of an insurance policy
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Offering an unfairly low settlement amount
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Refusing to provide a reasonable explanation for claim denial
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When an insurance company acts in bad faith, the policyholder may have the right to pursue additional damages beyond the original value of the claim.
