Insurance Company Stonewalling? Take Legal Action Now
Dealing with an insurance company can be frustrating under the best of circumstances. However, when an insurer engages in deliberate tactics to delay or deny a legitimate claim, it constitutes stonewalling, and you need to know your rights. This article explores the frustrating reality of insurance company stonewalling and outlines the steps you can take to protect yourself and pursue legal action.
What is Insurance Company Stonewalling?
Insurance stonewalling refers to an insurance company's deliberate attempts to avoid paying a legitimate claim. This isn't simply a slow processing time; it involves active and often unethical practices designed to wear down the policyholder, forcing them to abandon their claim. These tactics can include:
- Ignoring communications: Failing to respond to phone calls, emails, or letters.
- Requesting excessive documentation: Continuously demanding additional paperwork, often beyond what's reasonably required.
- Delaying the claims process: Prolonging the investigation indefinitely with no clear explanation.
- Offering unreasonably low settlements: Presenting a settlement offer far below the actual value of the claim.
- Misrepresenting policy terms: Incorrectly interpreting the policy to deny coverage.
- Using aggressive tactics: Employing intimidating or harassing behavior towards the claimant.
Why Do Insurance Companies Stonewall?
While not every delay is intentional, insurers may resort to stonewalling to:
- Minimize payouts: Reducing the amount paid on claims directly increases their profits.
- Avoid setting precedents: Denying claims can prevent similar future claims from being approved.
- Overwhelm claimants: The hope is that the prolonged process and bureaucratic hurdles will discourage the claimant from pursuing the claim further.
How to Deal with Insurance Stonewalling
If you suspect your insurance company is stonewalling, take proactive steps:
- Document everything: Keep detailed records of all communications, including dates, times, and the names of individuals you've spoken with. Maintain copies of all submitted documentation.
- Send communications via certified mail: This provides proof of delivery and can be crucial in legal proceedings.
- Set deadlines: Establish clear deadlines for responses and follow up promptly if these are missed.
- File a formal complaint: Contact your state's insurance department to file a formal complaint against the insurer.
- Consult with an attorney: An experienced attorney specializing in insurance claims can advise you on your rights and options. They can help navigate the legal complexities and potentially negotiate a favorable settlement.
What Legal Action Can I Take?
If you've exhausted all other options and the insurance company continues to stonewall, legal action may be necessary. This can involve:
- Filing a lawsuit: A lawsuit compels the insurance company to defend its actions in court.
- Breach of contract: If the insurer is failing to uphold its obligations under the policy contract.
- Bad faith: This legal claim alleges the insurer acted intentionally and unreasonably in denying or delaying a legitimate claim. Bad faith claims can result in significant damages, including punitive damages to punish the insurer for their actions.
How Can I Find a Good Attorney?
Finding a qualified attorney is vital. Look for an attorney specializing in insurance law with experience handling bad faith claims. Check online reviews, seek referrals from friends or family, and consult with several attorneys before making a decision. A free consultation is often offered.
What Damages Can I Recover?
The damages you can recover will depend on the specifics of your case and the laws of your jurisdiction. However, potential damages may include:
- Policy benefits: The amount the insurance company should have paid under the terms of your policy.
- Punitive damages: Awarded to punish the insurer for their bad faith conduct.
- Attorney's fees: The costs incurred in pursuing legal action.
Frequently Asked Questions (FAQs)
How long does it take to resolve an insurance claim dispute through legal action?
The timeline for resolving an insurance claim dispute through legal action varies significantly depending on the complexity of the case, court backlogs, and the jurisdiction. It can range from several months to several years.
What is the cost of hiring a lawyer to handle my insurance claim dispute?
The cost of hiring a lawyer for an insurance claim dispute varies greatly based on the lawyer's fees, the complexity of the case, and the amount of time spent on the case. Some lawyers may work on a contingency fee basis, meaning they only get paid if they win your case.
Can I represent myself in court?
While you can represent yourself in court, it is strongly recommended to seek legal counsel. Insurance claims are often complex, and an experienced attorney can significantly increase your chances of a successful outcome.
What if I can't afford a lawyer?
Legal aid organizations and pro bono services may be available to assist you. Contact your local bar association or legal aid society to explore these options. Many attorneys offer free initial consultations.
Insurance stonewalling is unacceptable. By understanding your rights and taking appropriate legal action, you can protect yourself and ensure you receive the compensation you deserve. Remember to document everything and seek legal counsel if you believe your insurance company is engaging in unfair practices. Don't let them win by default; fight for what's rightfully yours.
