Contracts with insurance companies can often be extremely confusing, but each one typically includes an implied covenant of good faith and fair dealing. Insurers violate this implied covenant when they fail to handle the claims of their customers properly.
Do you think that your insurance company has acted in bad faith in handling a claim of yours? Contact Leiva Law Firm at 818-703-1777 as soon as possible.
Examples of Bad Faith in California
Some of the most common kinds of bad faith include, but are not limited to:
- Denial of valid, covered claim
- Failure to pay a valid claim or full benefits
- Refusal to settle a claim within policy limits
- Misrepresentation of contractual language
- Refusal to investigate valid, covered claim
- Delay in investigating valid, covered claim
- Refusal to defend a policyholder against a claim or lawsuit
- Delay in paying valid, covered claim
Difference Between First and Third Party Bad Faith Actions in California
When you are dealing with another party’s insurance company, you file what is referred to as a third party claim. If you submit a claim with your own insurance company, it is considered a first-party claim. Both first and third parties can bring bad faith claims.
Many people automatically assume that claims filed with their own insurance companies will meet less resistance. In truth, all insurers are businesses seeking to maximize their bottom lines.
As a result, an extremely skeptical nature is taken to virtually all claims—even those filed by longtime customers. The general rule with any insurance company claim is the insurer is going to actively seek to resolve the claim for the least amount of money possible. Expecting any generosity is a fool’s errand.
Perhaps the most damaging decision people can make is to speak with their own insurance companies about their claims without legal representation. You should avoid this situation at all costs, as insurers often use these conversations to ask what are seemingly innocent questions that produce answers that are very damaging to later claims.
Do not speak to any insurance company—whether it is your own or another party’s—until you have legal counsel. Ignore any repeated phone calls and contact Leiva Law Firm.
Our firm has experience with all kinds of complex business contracts and agreements. We can review all of the terms of your agreement and ensure that an insurance company upholds its end of the agreement. When an insurer is unwilling to provide an adequate resolution through negotiations, we are not afraid to file a lawsuit.
Find a Business Litigation Attorney in California
If you think that an insurance company has acted in bad faith in handling your recent claim, it will be in your best interest to quickly seek legal representation. You will want to make sure that you contact Leiva Law Firm as soon as possible.
Our firm helps clients in communities all over the greater Los Angeles area. Call 818-519-4465 or contact us online to have our Los Angeles business litigation lawyers review your case and help you understand all of your legal options.