Yes, you can sue an insurance company for taking too long to process your claim if they act in bad faith and deny your claim. Insurance companies are required to handle claims promptly and fairly.
You could file a lawsuit for bad faith insurance practices, seeking compensation for damages beyond the claim amount. After reviewing your case, a personal injury lawyer in Boston will determine if suing for delays is the best course of action.
What Constitutes a Delay in Insurance Claims?
A delay in an insurance claim occurs when the insurance company takes longer than what is considered reasonable to review and process your claim. This means they are not acting quickly enough to make a decision or make a payment, which causes frustration and financial hardship for the claimant.
Common causes of insurance claim delays include:
- Missing or incomplete paperwork
- Incorrect or insufficient information
- Waiting for medical records or statements
- High volume of claims
- Complex cases requiring additional review
- Need for expert opinions or appraisals
- Delays in contacting witnesses or involved parties
Insurance companies are legally required to process claims in a timely manner. They must acknowledge receipt of your claim, investigate it, and make a decision within a reasonable time frame. If they don’t meet these obligations, they are likely violating your rights and could be subject to legal action for bad faith practices.
Does an Insurance Company Have to Decide on Claims in a Certain Amount of Time?
The answer to this question depends on your state. Some states have deadlines for insurance companies to communicate the decision on the claim. For example, in Texas, insurance companies must share their decision within 15 business days after receiving all the information.
Other states, like Massachusetts, have no set time limits for settling claims. However, insurance companies are required to process claims promptly and reasonably. What is considered prompt and reasonable varies depending on the complexity of the claim. Claims that require more investigation, such as those involving multiple parties, may take longer to resolve.
It’s especially important to work with a lawyer in this context because insurance companies often have the upper hand in determining what is considered prompt and reasonable. If delays seem excessive or unjustified, a lawyer will pursue legal action if needed. Also, they will help answer other frequently asked questions about auto insurance claims.
Recognizing Bad Faith Insurance Practices
Bad faith insurance practices occur when an insurance company deliberately avoids fulfilling its obligations to the policyholder. Essentially, bad faith happens when the insurance company does not act in good faith to honor the terms of the policy or treat the policyholder fairly.
Signs that your insurance company delayed the process in bad faith include:
- Unexplained or excessive delays in processing your claim
- Offering a settlement much lower than what you are owed
- Failing to communicate or respond to inquiries
- Repeatedly requesting the same information or documents
- Delaying payments after agreeing to a settlement
- Providing vague or contradictory reasons for delays
- Ignoring policy terms or coverage details
- Making unreasonable demands for additional proof or documentation
- Denying claims based on technicalities not relevant to the situation
If the company acts in bad faith, you may have a reason to sue an insurance company for taking too long. However, suing an insurance company is tricky, so you should always work with a lawyer. An attorney will guide you through the process and improve your chances of winning.
How to Prove Unreasonable Delay in Your Insurance Claim
To prove an insurance company has unreasonably delayed your claim, you need to gather evidence of the delay and show there’s no valid reason for it. Keep detailed records of all communications, including emails, phone calls, and letters.
Track the dates when you:
- Filed your claim
- Submitted additional information
- Last heard from the insurance company
This documentation will help show if the delay was unjustified. If the delay seems excessive compared to the complexity of your case, you can use this as evidence. If the insurance company requests unnecessary documents or repeatedly asks for information you’ve already provided, it shows that they’re not acting promptly.
A lawyer will assess whether the delay is unreasonable and advise you on the next steps. They will help you gather the necessary documentation and, if needed, take legal action against the insurance company for bad faith practices.
A Personal Injury Lawyer will Help You Sue the Insurance Company for Delays
A personal injury lawyer from Jason Stone Injury Lawyers will help you take legal action if your insurance company causes unnecessary delays. We recognize when delays are unreasonable and compassionately guide you through the process of suing for bad faith.
We handle all aspects of your case so you can focus on getting better. From managing the legal details to negotiating with the insurance company, we’ve got it covered. You focus on yourself, and we’ll take care of the rest.
At our personal injury law firm, we work on a contingency fee model: if we don’t win, you don’t pay. You only owe us if we secure a settlement or compensation for you. Our fee is a percentage of your recovery so that you won’t face any upfront costs. This is all part of our Stone Cold Guarantee®.
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