When Insurance Companies Act In Bad Faith
The rules on insurance coverage are simple. Essentially, if the insured party (policyholder) suffered a loss under an insurance policy issued by the insurance company, and the insured presented a valid claim on that loss, the insurance company is obligated to honor the policy.
Insurance policies are contracts, and the failure to honor them is a breach of the contract. Any contract carries with it a duty that each party to the contract operate in good faith and deal fairly with the other. Refusal to pay a legitimate claim, or deliberately slow-paying or underpaying the claims, may constitute insurance bad faith, which is legally actionable under California and federal laws.
How I Help My Clients
It is a stunning blow when the insurance company fails to meet its obligations in your hour of need after you have faithfully paid your premiums month after month. If you have suffered losses due to insurance bad faith in California, The McMillan Law Firm, APC, is here to stand up for you. I have been successful in bad faith insurance lawsuits on behalf of individuals and small businesses in San Diego County and throughout Southern California.
I can help you if your insurance benefits for water damage, fire, business interruption, natural disasters, title issues or any other covered event have been unfairly limited, delayed or denied.
You Might Have A Bad Faith Insurance Claim If…
Insurance contracts are special because the insurance company has such an unequal bargaining position when its performance is due that the law has imposed special liability rules when insurance companies act in bad faith.
Bad faith arises when the breach is unreasonable, for instance, where the insurer deviates from the rules and standards that are imposed by industry practice, statute or the law. Bad faith can be overt, or may consist simply of inaction. Sometimes, insurance benefits are denied for justifiable reasons, but this is certainly not always the case. You might have a bad faith insurance claim if any of the following are true:
- Your policy benefits have been unreasonably denied
- The insurance company has misrepresented facts or policy provisions
- They are delaying payment or communication for no apparent reason
- They are pressuring you to settle for an unreasonable amount
- They have failed to justify denial of a claim
- They have advised you not to hire a lawyer
As an attorney, I have the experience and knowledge to determine the true value of your claim. Together, we will scrutinize all relevant facts and the language of your policy to determine your insurance company’s obligations under California law. If it’s determined that they are acting in bad faith, I will apply maximum pressure to get them to finally treat you fairly so you can obtain the insurance benefits you need and deserve.
What Your Claim May Be Worth
Damages can be substantial for a finding of bad faith against an insurance company. Apart from the contract damages, i.e., the benefit of the bargain, bad faith damages can include general damages for emotional distress, anxiety and humiliation. Further, the cost of the attorney’s fees incurred by the insured to obtain the benefits of the policy can be awarded. Finally, the insured can recover an award of punitive damages.
Speak With An Attorney Who Has Your Best Interests In Mind
If the insured fails to file suit timely for breach of contract or bad faith following the denial of the claim, then those claims may be time-barred as a matter of law. While actions on the insurance policy itself must be filed within four years of the breach, a claim for bad faith is subject in California to a two-year statute of limitations, which means now is the best time to start your claim.
Insurance companies have their own profits in mind. I’m here to fight for the interests of everyday Californians like yourself. To discuss your bad-faith insurance claim with an experienced attorney in La Mesa, contact my law offices online or by telephone at 619-577-4533.