You’ve filed a claim. The insurance company hasn’t responded. What’s your next step?
The answer can be a complex one. There are many different types of insurance, and they all have their own policies and procedures for handling claims. Insurers are also subject to company-specific regulations, deadlines, communication methods, and hierarchies. As a policyholder on the outside of the maze, it can be difficult for you to find the right department with the right question at the right time.
There’s also the matter of bad faith. If an insurance company doesn’t want to pay, they have a variety of tactics at their disposal to try and make you drop the claim. One of these tactics is stalling. They’ll ignore your calls, never respond to your emails, and do everything that they can to delay the processing of your claim. They’re hoping that you’ll give up entirely.
What are the warning signs of an insurance company acting in bad faith? What can you do to speed up an insurance claim? When should you get a lawyer involved? Let’s take a closer look at what happens when insurers don’t return your calls.
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Common Reasons for Delays in Insurance Claims
Not every delay is an act of malice. Sometimes, an insurance company is simply overwhelmed by a large volume of claims. This could be the case if they’re a large business that handles thousands of claims at a time, or it could be the result of a natural disaster, mass casualty event, or something else that’s suddenly spiked their usual amount of business. If you’re one of many claimants fighting for their attention, you might find yourself waiting longer than usual.
Your case might also be put on hold if it’s a particularly tricky one. Straightforward claims are more likely to be approved or denied with a quick turnaround time. If your claim needs more “legwork,” that effort can slow down its movement through the chain.
For example, let’s say that your case requires an investigation. An investigation could prompt any number of things:
You can face additional delays if any of the facts of the claim are in dispute. When there’s disagreement over damages, liability, or policy coverage, the arguments can prompt rounds of back-and-forth communication between different parties.
Common Delay Tactics by Insurance Companies
“Bad faith” is when an insurance company knowingly or deliberately does something wrong to a policyholder. Bad faith actions can include covering up their own mistakes, denying a claim they know to be legitimate, poorly investigating a claim, or making false accusations of fraud.
Insurers can also act in bad faith when they use stalling tactics to delay a claim. They know that people get tired and annoyed when dealing with long, drawn-out claims. They can purposefully delay their actions and responses to make policyholders more likely to throw up their hands and give up.
Here are just a few of the ways that insurance companies can slow down claims:
You should also beware when insurance companies fail to communicate or when they only communicate in confusing or frustrating ways. These are common strategies for hindering the claims process. Look out for insurance companies:
Insurance companies have a duty of care towards you as a policyholder and paying customer. It’s called an “implied covenant” of fair dealings. If they aren’t acting in good faith, you might have legal recourse against them.
Resolving Your Insurance Claim After Delays
You don’t have to suffer in silence when you’re the victim of bad faith insurance practices. If they’re stalling, there are steps that you can take to force a response from them and get your claim moving again.
Step 1: Document everything
Make a record of your emails, voicemails, and call logs. Note the dates and times. List the specific information that you’ve requested about your claim. This creates a paper trail to prove their delays.
Step 2: Escalate
If you’ve been dealing with a claims adjuster, ask to speak to a claims manager or supervisor. If they try to deny the delays, send them a certified letter containing the documentation of your calls and emails. You can also file a complaint with the insurance company or with your state’s department of insurance.
Step 3: Hire a lawyer
Sometimes, this is the only thing that works, especially in bad faith cases. A lawyer that deals in bad faith claims like those at Hendrickson & Long, PLLC can demand that deadlines are met and that actions are communicated from the insurance company to you.
When you file a claim with your insurance company, you’re entitled to certain things. One of these things is a reasonable timeline of action. Though schedules and deadlines can vary depending on everything from company policy to government law, you aren’t supposed to spend months and months in limbo.
If you do find yourself in this scenario, it’s time to act. An insurance bad faith lawyer can help you get started. As a policyholder, you deserve to have your insurance claim handled fairly, promptly, and with all of your legal rights observed.
