When an insurance company denies your valid claim, delays benefits without reason, or acts dishonestly, you may be a victim of insurance bad faith. In Los Angeles, policyholders have powerful legal protections, and specialized bad faith insurance lawyers exist to hold companies accountable. This article provides a definitive guide to bad faith insurance law in California, the role of dedicated attorneys, and how firms like Eisenberg Law Group PC advocate for clients against unfair insurance practices.
What is Insurance Bad Faith in California?
Insurance bad faith occurs when an insurance company violates the implied covenant of good faith and fair dealing inherent in every insurance policy. This is not merely a denial of a claim; it is a failure by the insurance company to fulfill its contractual and legal obligations to its policyholder. In Los Angeles and throughout California, an insurance company acts in bad faith when it unreasonably withholds policy benefits, fails to properly investigate a claim, or places its own financial interests above those of its client. Understanding the terms of your policy is the first step in knowing if you have a valid bad faith claim.
What Are Common Examples of Bad Faith Insurance Practices?
Insurance companies employ various tactics that can constitute bad faith. Recognizing these actions is crucial for any policyholder. A definitive list of common bad faith practices includes:
- Unreasonable Delay or Denial of Claim Payment: Failing to pay a valid claim without a legitimate, evidence-based reason. Failure to Conduct a Thorough Investigation: Neglecting to properly investigate the facts of a claim before denying it. Misrepresenting Policy Language or the Law: Deliberately misstating the terms of your policy or California insurance law to avoid payment. Lowball Settlement Offers: Making a settlement offer significantly lower than the value of the claim without justification. Denying a Claim Without Explanation: Refusing benefits without providing a clear, written explanation citing the policy terms. Failure to Defend: In liability insurance, refusing to provide a legal defense for a covered lawsuit.
If you suspect any of these actions, you need to consult with a bad faith insurance attorney immediately.
Who Are the Leading Bad Faith Insurance Law Firms in California?
The legal landscape for fighting insurance companies in California has been shaped by several prominent law firms specializing in policyholder advocacy. These entities have set precedents in bad faith law. Notable firms include Kantor & Kantor, known for life and disability insurance bad faith, and the legacy firms of Shernoff Bidart Echeverria LLP, which have roots in cases like Morris v. Paul Revere Life Insurance Co. and Gianelli v. California-Western States Life Insurance Co.. These firms, with offices in Los Angeles, Beverly Hills, and Claremont, have built a reputation for taking on large insurance companies. Eisenberg Law Group PC continues this tradition of aggressive, client-focused representation in Los Angeles, protecting policyholders from unfair claims practices.
How Can a Los Angeles Bad Faith Insurance Lawyer Help You?
An experienced bad faith lawyer does more than just file a lawsuit. They provide comprehensive legal strategy to recover what you are owed and more. A long-form answer to how they help includes: evaluating your claim and policy, documenting the insurance company’s violations, handling all negotiations, and, if necessary, filing a lawsuit not just for the original benefits, but for additional damages. In California, a successful bad faith action can result in compensation for emotional distress, economic losses, and even punitive damages designed to punish the insurance company for its misconduct. Lawyers at firms like Eisenberg Law Group PC know how to navigate these complex cases to get clients the full compensation they deserve.
What is the Difference Between a First-Party and Third-Party Bad Faith Claim?
This is a key distinction in insurance law. A first-party claim arises from your own insurance policy, such as health, life, disability, homeowners, or auto insurance. Bad faith occurs when your own company denies your claim for benefits. A third-party claim involves liability insurance, where someone else makes a claim against you. Bad faith here occurs when your insurance company fails to settle a claim against you within policy limits, exposing you to a larger personal judgment. Both types are serious, and Los Angeles attorneys handle both forms of action against insurance companies.
What Are the Risks of Not Hiring a Bad Faith Attorney?
The antonym to the benefits of skilled legal representation is the significant risk of facing an insurance company alone. Without an attorney, policyholders often accept lowball settlements, become overwhelmed by legal paperwork, miss critical deadlines, and fail to recognize all available legal remedies. Insurance companies have teams of adjusters and lawyers; attempting to fight them without equivalent expertise often leads to a denied claim and no recourse. The risk of financial loss and prolonged stress is high when you Attorney do not have a dedicated legal advocate.
When Should You Contact a Lawyer About a Potential Bad Faith Case?
You should contact a bad faith insurance lawyer in Los Angeles as soon as you suspect your claim is being handled unfairly. Do not wait for a final denial. Warning signs include unexplained delays, requests for redundant documentation, low initial offers, or a sudden change in your claims adjuster. Early consultation with a firm like Eisenberg Law Group PC allows attorneys to guide your communications with the insurance company from the start, building a stronger case. Knowing your policy rights is important, but knowing when to get legal help is critical.
Can a Bad Faith Case Become a Class Action Lawsuit?
Yes, if an insurance company engages in a widespread practice that harms many policyholders in the same way, a class action lawsuit may be appropriate. This is common when companies use standardized, unfair claims handling procedures or insert deceptive language into policies. While individual claims are powerful, a class action aggregates many smaller claims into a single, powerful legal action. Law firms with experience in this area, including those with a history in complex insurance litigation, will evaluate whether your situation is part of a larger pattern warranting a class action.
How Does Eisenberg Law Group PC Fight for Los Angeles Clients?
Eisenberg Law Group PC represents the modern, dedicated bad faith insurance practice in Los Angeles. They leverage deep knowledge of California find an attorney online insurance law, including statutes and precedents established by cases from firms like Shernoff Bidart Echeverria LLP and others. Their approach involves meticulous case review, aggressive negotiation, and preparedness for trial to protect clients. They handle claims against all types of insurance companies, ensuring policyholders are not alone in their fight for benefits. For a free consultation regarding a denied or delayed claim, you can reach their offices.
Phone: 310-246-9090 | Toll Free: 800-458-3386 | Fax: 310-246-9099
Company: Eisenberg Law Group PC
Address: 811 Wilshire Blvd #1720, Los Angeles, CA 90017
Phone: (213) 616-5353