Insurance Bad Faith Calims

How to File a Bad Faith Insurance Claim 

Most people trust their insurance company. After all, they’ve paid their premiums faithfully, sometimes for years, with the expectation that when something goes wrong, an accident, a fire, a disability, a medical emergency, the insurer will step up and provide the protection they promised. Unfortunately, many California policyholders experience the opposite. Instead of support, they encounter delays, denials, unanswered calls, confusing explanations, or settlement offers that bear little resemblance to the actual value of their claim. When an insurer behaves this way, it is not simply frustrating. It may be insurance bad faith, and California law gives policyholders strong tools to fight back. 

At DL Law Group, we know how devastating wrongful claim handling can be. We’ve seen families pushed to the brink by denied health care coverage, business owners unable to reopen because their insurer refused to honor property damage claims, and individuals forced to fight for disability benefits they desperately needed. With more than 80 years of combined legal experience, our attorneys have successfully challenged insurance giants and recovered tens of millions of dollars for clients across California. 

If you believe your insurer acted unfairly, understanding how to file a bad faith insurance claim is essential. This page explains what bad faith looks like, what steps you must take, and how DL Law Group helps policyholders assert their rights and obtain the compensation they deserve. 

Understanding What Insurance Bad Faith Really Means 

Insurance companies are legally required to treat policyholders fairly. This obligation, known as the implied covenant of good faith and fair dealing, applies to every insurance contract sold in the State of California. While insurers are allowed to investigate claims and evaluate them, they cannot abuse that power by stalling, ignoring evidence, misrepresenting policy language, or unreasonably denying benefits. 

Bad faith occurs when an insurer places its own financial interests above its duty to the policyholder. Sometimes the misconduct is subtle, such as an adjuster who keeps asking for the same documents or a representative who gives you a vague reason for denying a procedure. Other times, it is blatant, such as misrepresenting your coverage, failing to conduct a proper investigation, or offering a settlement so low as to border on insulting. 

When an insurer acts in bad faith, they can be held responsible not only for the benefits they failed to pay but also for additional damages resulting from their misconduct. In some cases, California law allows for significant penalties, emotional distress damages, or even punitive damages designed to deter insurers from mistreating policyholders in the future. 

Filing a bad faith claim is not just about money; it’s about accountability. It’s about ensuring that large insurance corporations cannot ignore their obligations simply because they assume the average policyholder won’t fight back. 

Recognizing the Signs of Bad Faith 

Before filing a bad faith claim, it’s essential to understand the signs that indicate an insurer may be acting improperly. Many policyholders notice a shift in how they are treated the moment a significant claim is filed. Phone calls go unanswered. Emails receive generic replies. Requests for documentation multiply, even after everything has already been provided. The insurer may insist that your policy doesn’t cover something that it clearly does, or they may tell you that your injuries or damages aren’t as severe as your doctor or contractor claims. 

Bad faith can also involve unreasonable delays. An insurer might acknowledge your claim but fail to investigate promptly. They might take months to make a decision or repeatedly extend the deadline for responding. These delays are rarely harmless. They prevent policyholders from accessing medical care, rebuilding property, or recovering from financial losses. California law requires insurers to act promptly, and failure to do so may be considered bad faith. 

In more serious cases, bad faith becomes intentional misconduct. Insurers may misinterpret policy language, rely on biased experts, accuse the policyholder of fraud without evidence, or deny claims based on information they know is incomplete or inaccurate. These actions can be emotionally draining, financially damaging, and legally actionable. 

Understanding these patterns is crucial when deciding whether to pursue a bad faith claim, and DL Law Group can help identify them quickly and accurately. 

Steps to Take Before Filing a Bad Faith Insurance Claim 

Filing a bad faith claim is not something most people can, or should, do alone. The process involves understanding complex insurance laws, gathering detailed evidence, and navigating a system designed by insurers to their advantage. However, policyholders can take several necessary steps to protect themselves early in the process. 

The first step is to request a clear, written explanation of the insurer’s decision. California law requires insurance companies to provide specific reasons for denying or delaying a claim. If the explanation is vague, contradictory, or unsupported by policy language, it may be an early sign of bad faith. 

It is also essential to document all communication with the insurer. Saving emails, letters, phone logs, and claim statements creates a record that can later reveal patterns of misconduct. If the insurance company promises something over the phone, ask for it in writing. If they request documents, confirm which ones and why. The more information you preserve, the stronger your case becomes. 

Another critical step is obtaining your whole insurance policy and reviewing it carefully. Many people rely on summaries or general statements from their insurer, not realizing that the actual contract contains the real terms. DL Law Group’s attorneys routinely analyze policies to determine whether the insurer misrepresented coverage or ignored key provisions. 

If you believe your insurer is acting unfairly, contacting an experienced bad faith attorney early in the process is one of the most important actions you can take. Our team can step in to communicate on your behalf, prevent further misconduct, and begin building a strong claim from the start. 

How DL Law Group Builds a Bad Faith Insurance Case 

A bad faith insurance claim is built on evidence, legal analysis, and strategy. DL Law Group begins by conducting a comprehensive review of the entire claim file. We gather internal notes, correspondence, expert reports, policy language, medical records, adjuster emails, and any documents that reveal how the insurer handled the claim. 

Often, misconduct becomes clear immediately. We may find that the insurer ignored evidence, misinterpreted the policy, applied improper standards, or failed to comply with California’s Fair Claims Settlement Practices Regulations. In some cases, we find internal documentation showing the insurer knew the claim was valid but delayed payment anyway. 

We also work with independent experts, engineers for property claims, physicians for medical disputes, and forensic accountants for business losses, to establish the true value of the claim. This helps demonstrate not only that the insurer acted improperly but that their misconduct caused real, measurable harm. 

Once our investigation is complete, we present the insurer with a demand based on the full extent of their wrongdoing. If they refuse to resolve the matter, we will take the case to court. Insurers know our reputation, and they understand that DL Law Group is ready to fight aggressively when necessary. Many choose to resolve claims once they see the strength of the evidence and the experience of the legal team representing the policyholder. 

What You Can Recover in a Bad Faith Claim 

A successful bad faith claim can result in far more than payment of the original benefits. California law allows policyholders to recover the full value of the claim, plus damages for emotional distress, financial losses caused by the delay or denial, and, in some instances, punitive damages meant to punish intentional wrongdoing. These remedies serve a critical purpose: they create accountability and discourage insurers from mistreating policyholders. 

Every case is different, but what remains constant is DL Law Group’s commitment to obtaining the maximum compensation available under California law. 

Why Choosing the Right Attorney Matters 

Insurance companies are powerful institutions with vast resources, legal teams, and experience fighting claims. Policyholders deserve a firm with equal strength, knowledge, and dedication. DL Law Group has spent decades standing up to major insurers in California, forcing them to honor their contracts and treat policyholders fairly. Our central location in San Francisco, close to state and federal courthouses, enables us to litigate efficiently and effectively on behalf of clients across the state. 

Because we work on a contingency fee basis, you never pay upfront fees. We only get paid if we win. This ensures that every Californian, regardless of their financial situation, has access to powerful legal representation against insurance misconduct. 

Contact DL Law Group Today 

If you believe your insurer acted in bad faith, even if you are unsure, DL Law Group can help. Our attorneys offer free consultations to review your claim, explain your rights, and outline your options. Insurance companies count on policyholders giving up. We make sure they regret that assumption. Your insurance policy is a promise. When your insurer breaks that promise, DL Law Group is here to make things right.