When you’ve suffered an injury or damage and filed an insurance claim, you expect your insurance company to handle your claim promptly. Unfortunately, sometimes insurance companies take an inordinate amount of time to process claims.
The insurance industry can be challenging to understand if you’re new to it. and don’t know much. However, taking action in a timely manner can save you from a denied claim or a delay.
This delay can be incredibly frustrating and even financially harmful. If you’re in Nevada and find yourself in this situation, you might be wondering: Can you sue an insurance company for taking too long?
This article will guide you through the legal details regarding suing an insurance company for delays, reasons for such delays, and what steps you can take if your claim is being held up. Always remember that the claims process might vary from state to state.
For instance, the California law might have a different legal process and not meeting the criteria might lead to deny claims. If your insurer denies and doesn’t settle claims, you have a few options that we will also discuss.
Why Do Claims Investigations Take So Long?
Insurance claims can be delayed for a variety of reasons, some of which are legitimate, while others may be due to bad faith practices by the insurer. Here are some common reasons for delays in your insurance coverage:
- Complexity of the Claim: Some insurance claims, especially those involving significant damage or injury, require extensive investigation. For example, in a complex car accident case, the insurance company might need time to gather police reports, medical records, and repair estimates.
- Incomplete Documentation: If the claim forms or supporting documents are incomplete or inaccurate, this can lead to delays. It’s essential to provide all necessary information when you file a claim.
- High Volume of Claims: Sometimes insurance companies experience a high volume of claims, such as after a natural disaster, which can slow down the processing time.
- Investigations for Fraud: Insurance companies are diligent in investigating potential fraud, which can slow down the insurance claim process.
- Coordination with Third Parties: Sometimes, claims require input or verification from third parties, such as repair shops, medical providers, or other insurance companies.
- Insurance Company’s Tactics: Unfortunately, some delays are due to bad faith insurance practices, where the insurer intentionally delays the process to avoid paying out claims promptly.
What to Do If Your Insurance Company Is Taking Too Long?
Delaying insurance coverage is one of the unfair practices that might be an issue if you don’t understand the insurance policy well enough. If you believe your insurance company is taking too long to process your claim, or there is a bad faith claim, there are steps you can take:
- Document Everything: Keep a detailed record of all communications with the insurance company, including dates, times, and the names of the representatives you speak with.
- Follow Up Regularly: Regularly contact your insurance provider to check on the status of your claim. Consistent follow-ups can sometimes expedite the process.
- Submit All Required Documents: Ensure that you have submitted all necessary paperwork and documentation. Incomplete submissions are a common cause of delays.
- Seek Legal Advice: If the delay is unreasonable and you suspect bad faith, consult with an experienced attorney who specializes in insurance law. They can help you understand your rights and the next steps to take.
How Long Is Too Long to Wait for an Insurance Claim?
The time it takes to process an insurance claim can vary depending on the type of claim and the insurance company’s policies.
However, most state laws, including those in Nevada, require insurance companies to handle claims within a reasonable time frame.
For instance, Nevada law stipulates that insurers must acknowledge the receipt of a claim within 20 days and make a decision within 30 days of receiving all necessary documentation.
If your claim is taking longer than these general guidelines and you believe the delay is unreasonable, it may be time to consider taking legal action.
Can You Sue an Insurance Company for Taking Too Long?
Yes, you can sue an insurance company for taking too long to process your claim, especially if the delay is due to bad faith practices. Bad faith occurs when an insurer unreasonably delays or denies payment without a valid reason.
If you want to succeed in a bad faith lawsuit, you must prove that the insurer acted unreasonably and without proper cause.
Reasons to Sue Your Insurance Company
There are several reasons you might sue your insurance company for taking too long:
- Unreasonable Delay: If the insurer takes an excessive amount of time to process and pay your claim without a valid reason.
- Denial of a Valid Claim: If your valid claim is denied without a legitimate reason, you may have grounds for a bad faith lawsuit.
- Failure to Communicate: If the insurance company fails to keep you informed about the status of your claim or provide reasons for delays.
- Inadequate Investigation: If the insurer does not conduct a thorough investigation of your claim and delays payment as a result.
How Can You Sue an Insurance Company for Taking Too Long?
If you’ve decided to sue your insurance company for delays, here are the steps you should follow:
- Consult an Attorney: Speak with an attorney who has extensive experience in insurance law. They can help you evaluate your case and determine if you have grounds for a lawsuit.
- Gather Evidence: Collect all evidence related to your claim, including communications with the insurer, documentation of your claim, and any records of financial losses you’ve incurred due to the delay.
- File a Complaint: Your attorney will help you file a complaint with the court. This document will outline your allegations against the insurance company and the relief you are seeking.
- Discovery Phase: During the discovery phase, both sides will exchange information and evidence. This phase is crucial for building your case.
- Settlement or Trial: Many cases are settled out of court, but if a settlement cannot be reached, your case will go to trial. A judge or jury will then decide the outcome.
Laws in Nevada Regarding Suing an Insurance Company for Delay
Nevada has specific laws governing the timely handling of insurance claims. Under Nevada state law, insurers must:
- Acknowledge the receipt of a claim within 20 working days.
- Provide a decision on the claim within 30 working days of receiving all necessary information.
- Promptly pay any undisputed portions of the claim.
If an insurance company fails to comply with these regulations, it may be subject to penalties and the policyholder may have grounds for a lawsuit.
Proving Harm or Inconvenience Caused by Insurance Company’s Delay
To succeed in a lawsuit against an insurance company for delays, you must demonstrate that the delay caused you harm or inconvenience. You also need to fulfil the legal obligations, which may include:
- Financial Losses: Proving that the delay resulted in financial hardship, such as missed payments, additional interest on loans, or other economic impacts.
- Emotional Distress: Demonstrating that the delay caused undue stress, anxiety, or other emotional distress.
- Additional Costs: Showing that you incurred additional costs because of the delay, such as extra rental car fees, repair costs, or medical expenses.
Awarding Punitive Damages for Unreasonable Payment Delays by Insurers
In Nevada, if an insurance company is found to have acted in bad faith, punitive damages may be awarded. These damages are intended to punish the insurer for their misconduct and deter similar behavior in the future.
If you wish to get punitive damages, you must provide clear and convincing evidence that the insurer’s actions were malicious, oppressive, or fraudulent.
How an Attorney Can Help You When Your Insurance Company Is Taking Too Long
When dealing with an insurance company that is unreasonably delaying the processing of your claim, enlisting the help of an experienced attorney can make a significant difference. Here are key ways an attorney can assist you:
- Legal Expertise and Advice: An attorney specializing in insurance law can offer valuable advice on your rights and potential legal actions you can take against the insurance company for delays.
- Case Evaluation: They will thoroughly evaluate your case to determine if there are grounds for a lawsuit, reviewing all relevant documents and circumstances.
- Negotiation with the Insurance Company: Attorneys can negotiate on your behalf to expedite the claim process, often prompting the insurer to act more promptly.
- Gathering Evidence: An attorney helps compile and organize essential evidence, such as communications and documentation, to support your claim of unreasonable delay.
- Filing a Complaint: If necessary, they can assist in filing a formal complaint with the state insurance department or in court, clearly outlining the insurer’s violations.
- Representation in Court: Should the case go to trial, your attorney will represent you, presenting evidence and legal arguments to demonstrate the insurer’s bad faith.
- Maximizing Compensation: They work to ensure you receive the full compensation you’re entitled to, including any additional damages incurred due to the delay.
- Ensuring Compliance with State Laws: An attorney ensures your case complies with Nevada’s specific legal requirements, knowing the legal details efficiently.
Get the Justice You Deserve with BLG
Dealing with an insurance company that is taking too long to process your claim can be frustrating and financially damaging. However, you do have legal recourse.
If you believe your insurance company is intentionally delaying your claim without a valid reason, you can sue them for bad faith practices.
Understanding your legal rights and consulting with an experienced attorney brings the necessary steps to hold your insurance company accountable and seek the compensation you deserve.
If you’re tired of waiting endlessly for your insurance claim to be processed, it’s time to take control. At BLG, our experienced attorneys specialize in holding insurance companies accountable for their delays and bad faith practices. Don’t let frustration and financial strain overwhelm you.
Contact us today for a free consultation.
FAQs
How long is too long to wait for an insurance claim?
Typically, waiting more than 30 to 60 days can be considered too long. The exact timeframe can vary based on the type of insurance and jurisdiction.
What if an insurance company is taking too long?
You can contact the company’s customer service for updates, file a complaint with the state insurance department, or consult a lawyer if necessary.
Can insurance deny a claim for taking too long?
Yes, if you delay filing a claim beyond the policy’s specified time limits, the insurance company can deny it. Therefore, building good faith, having completed forms and knowing the time frame and time limit ensures insurance can be held accountable for not denying the claim without legitimate reasons.
Can you sue an insurance company for wasting your time?
Yes, you can sue for bad faith or breach of contract if the insurance company unreasonably delays processing your personal injury claims. You would have to cover the attorney’s fees but they ensure fair dealing for your medical bills and other expenses in such cases.
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