Filing an insurance claim should be a straightforward process, especially after suffering a personal injury. Yet, for many accident victims, what should be a routine experience turns into an uphill battle. If you want to sue an insurer for unreasonable delaying your injury claim, you’re not the only one.
Insurance bad faith is more common than you think and delayed insurance claim remains one of the biggest problems in the system. If the claim is not delayed, you may still have to deal with a denied insurance claim without any legal grounds.
When an insurance company fails to act in a timely manner or unreasonably delays your injury claim, it may be engaging in bad faith insurance practices.
Understanding your rights and how to sue an insurer for unreasonably delaying your injury claim is critical to recovering the compensation you’re entitled to.
It is also crucial to understand the claims process and the steps if insurance company denies your claim. But first, let’s talk about the basics.
What Constitutes an Unreasonable Delay?
Under insurance law, insurers have a legal obligation to handle claims in good faith. This means they must investigate, process, and pay valid claims within a reasonable timeframe.
A delay becomes unreasonable when the insurance company fails to respond, investigate, or make a decision in a timely manner without a valid excuse.
These rules apply across different types of insurance claims—whether it’s an auto insurance claim, a health insurance claim, or any personal injury claim.
Why Do Insurance Companies Delay Claims?
Most insurance companies operate with profit as a primary goal. Unfortunately, some resort to bad faith practices to reduce payout obligations or discourage claimants. This means they use different methods for delaying your injury claim. Common delay tactics used by insurers include:
1. Repeatedly Requesting the Same Information:
A tactic used to stall the process, often leading to frustration or abandonment of the claim by the insured.
2. Failing to Acknowledge Receipt of Documents:
Ignoring submitted paperwork can slow the process and serve as a tool to avoid timely payment.
3. Avoiding Phone Calls and Emails:
Limited communication or completely ghosting the claimant disrupts the process and delays resolution.
4. Using Vague or Unjustified Reasons for Delays:
Some insurers give ambiguous explanations for needing more time or issue blanket denials without substantial backing.
5. Delaying Payment Even After Accepting the Claim:
Even after acknowledging a valid claim, companies may stall the actual payout, adding to the financial strain on the victim.
These practices cause significant financial losses, emotional harm, and unnecessary stress for victims already dealing with physical injuries and recovery. Now, imagine a bad faith claim on top of all these things. Moreover, insurance disputes also add fuel to the fire and make it harder for victims to get guidance.
Recognizing Bad Faith Insurance Practices
Bad faith insurance refers to when an insurer acts unfairly, dishonestly, or in a deceptive manner when processing a claim. This can include the following methods for delaying your injury claim:
1. Denying a Valid Claim Without Proper Investigation:
A claim may be dismissed without reviewing medical records, witness statements, or accident details.
2. Failing to Communicate Denial Reasons:
Insurers may issue a denial letter without clearly explaining why the claim was denied, leaving the policyholder in the dark.
3. Offering Unreasonably Low Settlements:
A common tactic to reduce costs, offering compensation well below the claim’s value in the hope that the claimant will accept out of desperation.
4. Intentionally Delaying to Pressure Claimants:
Dragging the process out to push victims into accepting less than they are owed or giving up entirely.
In jurisdictions recognizing bad faith insurance claims, such conduct can justify legal action. If proven, the policyholder may be entitled to compensation above and beyond the original claim, including punitive damages meant to punish the insurer.
Steps to Take Before You Sue an Insurance Company
If you believe you’re being mistreated or your insurance company is delaying your claim in bad faith, you should take several critical steps to protect your rights and strengthen your case:
1. Document Everything
Keep a thorough record of all communications with the insurance company, including:
- Dates and times of phone calls
- Copies of emails and letters
- Names of representatives spoken to
- What was discussed or promised during each interaction
Also, save copies of all submitted documents, claim forms, and responses received. Documentation is key to proving bad faith behavior.
2. Gather Evidence
Collect supporting documents such as:
- Medical records and bills
- Police or accident reports
- Photos of injuries or property damage
- Witness statements
This evidence reinforces the validity of your original claim and helps show the insurer’s delay was unjustified.
3. Review Your Insurance Policy
Read your insurance policy to understand what is covered, deadlines for processing claims, and your responsibilities. Some policies have specific language about claim timeframes, and knowing your rights will clarify whether the insurer is out of line.
4. Send a Formal Demand Letter
A demand letter should outline:
- A summary of the original claim
- Steps you’ve taken to resolve the issue
- A clear statement of how the insurer has delayed or denied the claim
- A reasonable deadline for response
This letter serves as a final opportunity for the insurance company to resolve the issue before legal action is taken.
5. Seek Legal Advice
Consulting an experienced attorney is essential. Insurance law can be complex, and a lawyer skilled in bad faith insurance claims can guide you through the best course of action.
Bonus: Seek free consultation before legal action, or you can even read a few personal injury blog posts to get a better idea of such cases. The best case scenario is to find experienced lawyers with experience in insurance company lawsuits for guidance.
Filing a Bad Faith Lawsuit Against An Insurance Company
Once you’ve exhausted informal remedies and delays persist, filing a bad faith lawsuit may be the next step. To sue an insurance company for bad faith, your legal team will need to demonstrate:
- You filed a valid claim within the policy guidelines
- The insurance company failed to process it fairly or in a timely manner
- The insurer’s actions were unreasonable, deceptive, or unfair
In a successful lawsuit, you could recover:
- The full amount of the original claim
- Compensation for emotional distress or financial hardship
- Legal fees
- Punitive damages
The Role of Legal Representation When You Sue An Insurer
A knowledgeable attorney plays a central role in building your bad faith insurance case. Your attorney will:
- Handle all communication with the insurance company
- Review your policy in detail
- Obtain and organize all relevant documentation
- Develop a compelling legal argument
- Represent you in court if necessary
With legal representation, you are better positioned to successfully sue for bad faith and secure fair compensation.
Common Claims Impacted by Bad Faith
Bad faith practices can affect nearly any type of insurance claim, including:
- Auto Insurance Claims: For damage or injury from car accidents, including hit-and-run cases.
- Health Insurance Claims: Covering emergency treatment, hospital stays, surgeries, and follow-up care.
- Personal Injury Claims: Related to slips and falls, workplace accidents, product liability, or other injuries.
Insurers may delay or deny these claims using vague justifications or unreasonable paperwork demands.
Consequences of Delayed Claims
The impact of an unreasonably delayed claim can be far-reaching:
- Medical Bills: Unpaid medical expenses can pile up, affecting credit and access to care.
- Lost Wages: Injuries may keep you from working, creating additional financial stress.
- Delayed Recovery: Without timely payment, you might delay or forego important treatments.
- Emotional Harm: The stress of dealing with an unresponsive insurance carrier can harm your mental health.
Legal Protections and State Laws
Each state has its own laws requiring insurance companies to handle claims within specific timeframes. This prevents companies from denying your injury claim. For example, some states require insurers to:
- Acknowledge receipt of a claim within 15 days
- Investigate the claim within 30 days
- Make a decision and issue payment within 45 days
Failing to meet these deadlines could legally qualify as bad faith behavior, giving you a strong foundation to sue the insurance company.
What Compensation Can You Receive From Companies Delaying Your Injury Claim?
If a court finds that the insurance company acted in bad faith, you may be awarded:
- Full claim payout
- Additional compensation for financial losses
- Damages for emotional harm
- Attorney’s fees and litigation costs
- Punitive damages (in egregious cases)
These added damages are designed to deter unfair or deceptive practices by insurers and ensure policyholders are made whole.
Final Thoughts
If your insurance claim has been unreasonably delayed, don’t wait to act. Seek legal guidance from a firm that understands both personal injury law and bad faith insurance practices.
At Bourassa Law Group, we help clients hold insurance companies accountable for bad faith conduct. If they’ve been denying your injury claim, our experienced attorneys are ready to fight for your rights.
When to Seek Help with BLG
Contact Bourassa Law Group today for a free consultation. We’ll evaluate your case, explain your legal options, and guide you through the best course of action to pursue compensation. Don’t let an insurer take advantage of your situation—let us help you reclaim control and secure the justice you deserve.
1-800-870-8910