Standing Up for Clients When Insurance Companies Don’t Hold Up Their End of the Bargain
Having proper insurance is vital to protect yourself, your family, or your business against catastrophic events such as fires, natural disasters, auto accidents, and/or disabling injuries. When the unimaginable happens, you look to your insurance policy to cover the cost of the losses and make you feel secure.
It is becoming more frequent that the insurer does not hold up their end of the bargain and denies your claim, agrees to only pay a portion of the true value, or delays payment for months or even years. The inability of insurance companies to follow through on their commitments to you compounds your problems and can lead to future financial problems.
When the insurance companies no longer have your back, you need someone on your side. Our Los Angeles bad faith insurance lawyers at Citron and Citron are aware of the many tactics insurers may use to wrongfully deny the assistance that you deserve. We know what insurance failures can cost you, both financially and emotionally. We are dedicated to working with our clients to receive the full amount they deserve.
If you believe your insurance company acted in bad faith in Los Angeles, CA, throughout California, or anywhere in the United States, the bad faith insurance claim lawyer at Citron & Citron is ready to help. Call (310) 450-6695 to schedule a consultation today.
California Bad Faith Insurance Law
In California, contracts between an insurer and a policyholder have a clause called the “implied covenant of good faith and fair dealing.” This means that the insurance company must act in good faith when fulfilling its contractual obligations and may not unfairly interfere with a policyholder’s rights under the contract. Such rights include
- Receiving benefits for covered risks
- A proper investigation into the liability for an injury
- Defense by the insurer against claims by third parties
- Using good faith to settle all claims
In many cases, an insurance company will fail to meet its obligations under the contract. This can often constitute a breach of the covenant of good faith and fair dealing, and policyholders may bring a legal claim for insurance bad faith.
Some acts that may constitute bad faith include:
- Unreasonable delays or unreasonable refusals to settle a claim
- Refusal to pay a valid claim or unreasonably limiting or delaying payments
- Failing to conduct a prompt, fair, and full investigation into a claim
- Refusing to communicate with policyholders about claims or claim status
- Failing to provide explanations for a claim denial
- Misrepresenting the facts of coverage under the policy
- Compromising a policyholder’s ability to defend a lawsuit
Recovering Punitive Damages
When insurance companies engage in bad faith, courts will sometimes compel them to pay punitive damages for their conduct. The law does not base punitive damages on any specific financial losses of plaintiffs. Instead, in some cases, a jury can award a plaintiff punitive damages as an additional punishment for the insurance company if it engaged in severe wrongdoing.
Punitive damages can add millions of dollars to a claim value. In many cases, the insurance companies will actively contest such awards. Our insurance recovery lawyer fully understands the law regarding the availability of punitive damages and can identify in which cases it is appropriate and just to seek them out. We will always consider the possibility of punitive damages in every case to ensure our clients receive justice.
At Citron & Citron, we have handled various types of bad faith insurance cases over the years. Our bad faith insurance lawyer is committed to representing policyholders who have been adversely affected by insurance companies. If you are looking for an outstanding bad faith insurance claims lawyer in the Los Angeles, CA area, reach out to Citron & Citron. Call (310) 450-6695 to schedule a consultation today.
Call Us Now To Get Started
(310) 450-6695
