Insurance is an unusual product. With insurance, you pay money and in return receive merely a pile of paperwork called an insurance policy. Most people then file away the policy in a drawer and forget about it. This is what is unique about insurance – it is the one product people purchase with the hope of never having to use it. If you use the policy, it means an unfortunate event has occurred such as a car accident, fire or a lawsuit. The purpose of an insurance policy is to provide the policy holder with “peace of mind” – the guarantee that should something go wrong, that it will still be ok.
Unfortunately, insurance companies do not always honor their agreement and pay when claims are made. Some insurance companies take advantage of consumers when they are at their most vulnerable and in need of the assistance they purchased in the form of the insurance policy.
In California and many other states, in part because insurance is a highly specialized product and people are at their most vulnerable and dependent on the insurance company when they make insurance claims, insurance companies have special duties to consumers. These special duties are referred to as an “implied duty of good faith and fair dealing.” In other words, insurance companies may not deprive their policy holders of the benefits of the policy. When an insurance company violates that duty, it is said to act in “bad faith.” An insurance company that acts in bad faith may be liable for economic loss, mental distress, attorney’s fees and even punitive damages.
At Parisi & Havens, we represent consumers, as well as small and large businesses, when their insurance company acts in bad faith. Our attorneys have litigated against all of
the major insurance companies. You can contact us via email at info@parisihavens.com,
by phone at (818) 990-1299, or at the Contact Us page on our website.