Understanding Bad Faith Insurance Claims in California
The following article is provided by Solum Space Law, APC for general information only and should not be taken as legal advice. Every case is unique—if you have questions about protecting your rights after an injury in Southern California, call our office for a free consultation.
You pay your premiums on time, expecting coverage when disaster strikes. But what happens when your insurer fights you instead? In California, that isn’t just frustrating—it can be illegal.
What Is “Bad Faith” in Insurance?
Under California law, every insurer must act with an implied “covenant of good faith and fair dealing.” When they don’t—if they unduly delay, deny, or lowball a valid claim—they may be acting in bad faith.
A successful bad-faith claim can unlock:
Full policy value + interest
Punitive damages for misconduct
Compensation for emotional harm, legal fees, and life disruption
How Insurers Cross the Line
Common bad-faith tactics include:
1. Denying Without Basis
Rejecting a claim without investigating or providing clear reasons.
2. Dragging Their Feet
Long delays in responding or processing—even when you’ve submitted all necessary proof.
3. Misrepresenting Policy Coverage
Twisting words in your policy to deny coverage you paid for.
4. Offering Lowball Settlements
Pushing unreasonably low offers, hoping you’ll accept quickly.
5. Punishing Claims
Retaliating—like threatening cancellation—simply because you filed a valid claim.
6. Ignoring Experts
Refusing medically necessary treatment referrals or doctor recommendations.
What You Can Do (Before It’s Too Late)
1. Push Back on Delays
Demand written updates, investigation records, and reasons for any denial.
2. Keep Records
Log every phone call, email, or letter. Preserve doctors' notes, expert reports, and medical bills.
3. Consult an Attorney Early
California law limits how long you have to sue—typically up to four years—so don’t wait.
4. Know the Stakes
Bad-faith claims can yield far more than your policy’s limits, including emotional distress and attorney fees.
Don’t Let Them Win by Default. Protect Your Claim Today.
Insurance is your safety net—until it snaps. When insurers act unfairly, they’re not just breaking a promise—they’re breaking the law. You deserve advocates who understand insurance codes, regulations, and case law—and who are ready to take on the toughest companies in California.
Ready to discuss your case? Call (310) 405-0014 or complete our online form for a free, no-pressure case evaluation. Solum Space Law is here to hold insurers accountable so you can focus on moving forward while we fight for the compensation you’re owed.
This blog is attorney advertising. The material below is presented by Solum Space Law, APC for educational purposes only and is not a substitute for tailored legal advice. Cases are fact-specific; if you have questions about the value of your claim, contact us for a complimentary consultation.
