When you file an insurance claim, you deserve clarity, respect, and prompt action from your insurance company. However, in some cases, policyholders are faced with frustrating delays that can disrupt their lives and finances. These unnecessary delays — commonly referred to as unreasonable delays in insurance payments — are not just frustrating; they can also be a sign of bad faith on the part of your insurer.
But what exactly constitutes an unreasonable delay, how can it impact you, and what legal recourse do you have? Let the bad faith insurance attorneys at Lenahan & Dempsey explain.
What Constitutes an Unreasonable Delay?
Insurance companies have a legal duty to handle claims fairly, thoroughly, and within a reasonable timeframe. Some claims, especially straightforward ones, are resolved within 30 days. For more complex claims, some allowances may be made, but prolonged delays without a valid reason could cross the line into bad faith.
If your insurer isn’t prompt in investigating, processing, and paying your claim, this could qualify as an unreasonable delay in payment.
Signs of Bad Faith Tactics
Unreasonable delays are often accompanied by tactics intended to frustrate or discourage policyholders:
- Ignoring Communications: Failing to respond to your calls, emails, or inquiries about the status of your claim can signify that your insurer has no intention of resolving it promptly.
- Requesting Unnecessary Information: Asking for irrelevant or redundant documents — especially if the information has already been provided — can be a deliberate attempt to stall the process.
- Stalling Investigations: An insurer may prolong investigations unnecessarily, leaving you waiting without an explanation or update.
- Misrepresenting Coverage: Claiming that your loss is not covered by the policy when it actually is can create unwarranted delays and misunderstandings.
- Offering Low Settlement Amounts: Insurers may attempt to undervalue your claim, offering a settlement far below its actual worth, leaving you stuck in endless negotiations.
If you’ve encountered any of these practices, it could indicate bad faith on the part of the insurance company.
Why You Can Trust Lenahan & Dempsey
At Lenahan & Dempsey, we understand the frustration and financial stress caused by unreasonable delays in handling insurance claims. Our Pennsylvania bad faith insurance attorneys are committed to standing up to insurance companies that act unfairly, ensuring your case is handled promptly and fairly.
We take a thorough approach to investigating the reasons behind the delay, advocating for your rights, and working diligently to secure the compensation you deserve. By partnering with us, you gain a dedicated team determined to hold insurers accountable and alleviate the burden these delays have caused.
Lenahan & Dempsey has a legacy that spans over six decades, built on a foundation of trust, integrity, and a commitment to justice. Since its establishment, the firm has earned a reputation for handling complex legal cases with a client-first approach, securing favorable outcomes for thousands of clients.
Our team of attorneys has consistently been recognized for their legal excellence, with accolades from prestigious organizations in the legal community. Over the years, we have successfully taken on powerful insurance companies and corporations, leveraging our extensive legal abilities to fight for the rights of individuals and families. This proven track record demonstrates our unwavering dedication to protecting our clients’ interests and achieving results they can depend on.
Real-Life Impact and the Landmark Hollock v Erie Case
To understand the significance and legal precedent surrounding unreasonable delays in insurance payments, we turn to a groundbreaking case in Pennsylvania: Hollock v. Erie Insurance.
This landmark case, handled by Attorney Timothy Lenahan and Attorney Christine S. Lezinski of Lenahan & Dempsey, who represented the policyholder/insured, has revolutionized how bad faith laws apply to unreasonable insurance payment delays. The case was so impactful that it reached the Pennsylvania Supreme Court and resulted in significant legal protections for policyholders.
The Hollock v. Erie case established the legal precedent that insurance companies have a duty to treat policyholders fairly. When they fail to do so — whether through unreasonable delays or blatant bad faith practices — they can be held legally accountable, often facing severe punitive damages. Notably, these damages can exceed the value of the original insurance claim.
What Does This Mean for Policyholders?
Thanks to Hollock v. Erie, policyholders now have stronger rights and legal protections. If you’re a victim of bad faith insurance practices, like unreasonable delays, you may not only receive your original payment but also significant punitive damages designed to deter further bad behavior from insurers.
Attorney Timothy Lenahan’s efforts in this and other similar insurance and bad faith cases earned him the title of 2024-2025 Insurance Lawyer of the Year (Plaintiffs) by Best Lawyers in America, reinforcing his status as a staunch advocate against the misdeeds of major insurance companies.
Examples of Unreasonable Delays and Consequences
Here are common scenarios that can help you identify unreasonable delays in your own claim:
- Ignoring Phone Calls or Emails: If your insurer doesn’t respond to multiple attempts to contact them, this is a clear signal of disinterest in resolving your case efficiently.
- Requesting the Same Documents Repeatedly: Being asked to provide the same paperwork over and over is an unnecessary delay tactic.
- Unexplained Investigation Delays: When investigations drag on without just cause, it suggests intentional stalling.
- Unjustified Denials or Lowball Offers: If your claim is denied without valid reasoning or you receive settlement offers far below your claim’s value, it could be an effort to withhold proper payment.
The financial consequences of such delays can be significant. They may leave you unable to repair damages, recover from loss, or deal with medical expenses, resulting in undue financial hardship.
Don’t Be Intimidated – Your Rights Matter
Unreasonable delays in insurance payments are more than just a nuisance — they’re a violation of trust. Policyholders deserve to be treated fairly, respectfully, and in a timely manner. If you’re facing an unreasonable delay, remember that you have the right to demand action and accountability from your insurer.
If you think your insurance company is acting in bad faith, don’t wait. Seek the assistance of an attorney, like those at the award-winning team at Lenahan & Dempsey, to protect your rights and hold insurers accountable. Contact us today to schedule a free consultation.
*Best Lawyers in America and Best Law Firms are trademarks of Woodward White. This trademark is used with permission. Details on Settlements & Verdicts are found at LenahanDempsey.com. All law firms are required to note that because the facts of each case are different, past performance is not a promise of a future outcome.
