Los Angeles Insurance Bad Faith Attorneys

When Your Insurer Won’t Play Fair, We’re Not Afraid to Get Tough

As an adult, you can count on always having to pay taxes—and insurance.

Whether for your auto, home or apartment, health, or another item of value, insurance is either required or strongly recommended to protect you in case of an accident, injury, or other disaster.

However, sometimes when we call on insurers in our time of need, they refuse to honor their contract—never mind the hundreds or, more likely, thousands of dollars you’ve given them in return for the promise of help when you need it. If you find yourself in this situation, you may feel frustrated, angry, and overwhelmed.

It’s hard to know what to do when an insurance company is using its entire might to give you the runaround or flat-out deny you the coverage you’ve paid for. However, you do have options.

If an insurer is refusing to provide the services it’s contractually obligated to, we can help you file a claim for their negligence. Sometimes, legal pressure is the only way to get a company to do what’s right.

Fighting back against insurance bad faith isn’t easy, but our Los Angeles bad faith insurance attorneys at Robins Cloud LLP won't back down. Call us at (800) 691-2363 to schedule a free consultation with our team.

What Does Insurance Bad Faith Look Like?

There are multiple ways an insurer can violate their contract with you. They are always obligated to act in your interests—and if they either fail to do so or take measures to deny you the services they contractually promised, you may be able to file a claim to earn their compliance.

Insurance bad faith can be:

• Refusal to defend you if you’ve been blamed for an accident
• Refusal to settle for damages that are covered in your contract with the company
• Failure to provide a fair investigation before denying claims
• Failure to provide a decision on a claim (whether to pay or deny) in a reasonable timeframe
• Delayed responses to or ignoring your questions or concerns
• Blatantly undervaluing a claim
• Causing unreasonable hardship (paperwork, documentation, etc.) before resolving a claim
• Failing to explain and justify their denial of a claim

In some cases, insurance sales teams may mislead you about the contents of a policy or fail to explain the limitations and exclusions before you sign the contract and pay your first premium.

Such actions are unfair and will not be tolerated by our court system. Ask our bad faith insurance lawyers in Los Angeles how we can represent your interests against a bad-faith insurer today.

First-Party Insurance Bad Faith Claims

A first-party claim is one you make against your own insurance policy.

For instance, if a pipe in your house bursts and floods your kitchen and living room, you may ask your homeowner’s or renter’s insurance to cover restoration services and replace the items you lost. As another example, if you’re hit by a driver who doesn’t carry insurance, you might make an uninsured motorist claim against your policy, so you don’t have to pay thousands for auto repairs and injuries.

If you make a claim, it’s your insurer’s job to investigate it and decide whether they are obligated to pay for it within a reasonable timeframe. No one should have to wait months for their car to get repaired or their waterlogged home to be restored.

Your insurer cannot put off paying you and hope you’ll give up on following up with them. If they choose to deny your claim, they must do so promptly and provide evidence in support of their decision. If they do not, or if the “evidence” they gave you looks fishy or incomplete, you may have a claim.

Third-Party Insurance Bad Faith Claims

We all hope we’ll never be to blame for a car accident, but part of the reason we pay for car insurance is in case the worst happens. If you cause damage to someone else’s car and/or health, your insurer is on the hook to pay for reasonable expenses, up to a policy’s maximum limits.

Like any claim you make, a third-party claim should be fully investigated by the insurer. It is their duty to defend you, whether they like it or not—and that means considering any evidence, including your testimony, about the other driver’s role in the accident.

Once liability has been settled, they must pay all expenses they’re contractually obligated to. If they don’t, you might find yourself facing an unfair lawsuit for expenses your insurer is responsible for. You being at fault for an accident is no reason for an insurer to break its agreement with you.

Signs of Insurance Bad Faith

The signs of insurance bad faith can often be subtle, but they generally involve an insurance company acting unfairly or unreasonably in handling a claim. Some common indicators include:

• Unexplained or Unreasonable Denial of Claims: If your insurance claim is denied without a clear or valid explanation, or the reasons given seem unjustified, this can be a major red flag. Insurance companies are required to provide a reasonable basis for denying a claim, and failure to do so may indicate bad faith.
• Delays in Processing: Unnecessarily long delays in investigating or processing a claim can also signal bad faith. While some claims take time to review, the insurance company should communicate regularly with you and keep the process moving. Intentional or avoidable delays, especially without explanation, can be a tactic to frustrate policyholders into accepting lower settlements or giving up altogether.
• Failure to Conduct a Proper Investigation: Insurance companies are obligated to investigate claims thoroughly and fairly. If they ignore key evidence, fail to interview witnesses, or refuse to consider the policyholder’s side of the story, they may be acting in bad faith. An incomplete or biased investigation is a breach of their duty.
• Lowball Settlement Offers: Offering significantly less than the value of the claim or what the policy covers can also be a sign of bad faith. If the insurer proposes an unreasonably low settlement without justifiable reasons, it may be trying to avoid its full financial responsibility under the policy.
• Lack of Communication: Failing to return calls, respond to emails, or provide regular updates about your claim can also suggest bad faith. Insurance companies have a duty to keep policyholders informed throughout the claim process. A lack of communication can indicate they are not taking your claim seriously or are avoiding resolving it.
• Misrepresenting Policy Terms: If the insurance company misinterprets or misrepresents the terms of your policy to deny coverage or limit your payout, it could be engaging in bad faith. They are required to explain your policy accurately and apply its provisions fairly.
• Unreasonable Request for Documentation: Asking for excessive or irrelevant documentation to process your claim can be a delay tactic or a way to make the process unnecessarily difficult for you, which could indicate bad faith.

Do I Have Grounds to Sue My Insurance Company?

If you are wondering whether you have grounds to sue your insurance company, it's essential to consider a few factors first. Generally, an insurance company is obligated to act in good faith when processing and paying out claims. They must also communicate with their policyholders promptly, transparently, and honestly.

If your claim was denied or underpaid without any reasonable basis, the insurer may be acting in bad faith. However, proving this can be challenging, which is why it's best to speak with a Los Angeles bad faith insurance attorney at Robins Cloud LLP who can help you assess your options.

We can analyze your policy and investigate the handling of your claim to determine whether you have a case. Don't hesitate to contact us if you believe you were treated unfairly by your insurance provider.

Insurance Company Obligations to Policyholders

Insurance companies generally owe their policyholders several important duties, such as:

• Providing accurate information: Insurance companies must provide customers with accurate and up-to-date information about their policies. This includes providing clear and understandable explanations of policy terms, coverage limits, exclusions, and other important details.
• Acting in good faith: Insurance companies must act in good faith when handling claims and other related matters. They must handle claims in a fair and honest manner, as well as investigate claims thoroughly before making a decision on whether or not to pay out benefits.
• Promptly paying claims: Insurance companies must also pay out benefits promptly when due. This means that if an insurance company decides to pay out benefits for a claim, they must do so in a timely manner so that policyholders can receive the money they are owed in a timely fashion.
• Handling complaints quickly: Insurance companies have a duty to handle complaints quickly and efficiently. If a policyholder has an issue or is unsatisfied with the way their claim was handled, they should be able to contact the company and get resolution quickly and easily.

What Damages Can I Seek for Insurance Bad Faith?

If you have experienced insurance bad faith, you may be entitled to damages.

Typically, policyholders can seek economic damages, including the amount of a claim that was wrongfully denied or delayed, as well as any additional out-of-pocket expenses incurred as a result of the bad faith conduct, such as legal fees and/or the cost of defending a lawsuit. Additionally, policyholders may be entitled to non-economic damages, such as emotional distress, inconvenience, and mental anguish.

Contacting an experienced insurance bad faith attorney in Los Angeles is crucial in navigating the complexities of pursuing these damages and ensuring you receive the compensation you deserve.

We Can Help You Level the Playing Field

Insurance carriers are companies, not philanthropic organizations, which means their focus is always on their profits. Sometimes they try to boost their bank accounts by frustrating their insureds or outright refusing to pay claims they are obligated to.

Facing well-funded internal legal teams, the victims of such unfair schemes may feel they have nowhere to turn. However, this is not a valid business practice, and you can likely receive compensation if your insurer is trying to deny you the settlement you deserve.

Any type of insurer can act in bad faith, but no matter the situation, we’re prepared to take them to court. Not only should an insurance company have to pay as its contract with you details; it also must face punishment for trying to fleece its customers.

While these cases can be complicated, they are important to fight. You can pursue justice for yourself and simultaneously deter the company from using such unfair tactics against other clients. Our team at Robins Cloud LLP is ready to take on dishonest insurance companies to protect your finances and rights.

Call our firm today at (800) 691-2363 to schedule a free consultation with our Los Angeles insurance bad faith lawyers. Robins Cloud LLP serves the victims of bad faith insurers throughout the nation.