A Washington bad faith insurance attorney explains three different reasons why insurance companies will wrongfully delay an insurance claim payment.

Three Reasons Why Insurance Companies Delay Payments

Andrew Kim
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Personal Injury, Car Accidents, Motorcycle Accidents, Wrongful Death and Catastrofic Injuries Attorney

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One of the most common examples of insurance company bad faith is delayed payment or delayed processing: when an insurance company takes an unreasonable amount of time to process or pay your claim—or when they purposefully delay your claim for an arbitrary reason. 

But how does delaying a payment or stalling a claim benefit the insurance company? Here are three common reasons that insurers have delayed payments in the past: 

  • Collecting interest. For every day that an insurance company delays your claim payment, they can make interest of the money that is rightfully yours. The longer that they can keep your money in their bank, the longer that they can make money off of your money. If they delay the payments of lots of their customers, they can make a significant profit off of holding onto the money of injury victims—even if it is for a few days, weeks, or months. 
  • Bullying the claimant. When an insurance company purposefully stalls the claims process, they may be making an attempt to frighten their claimant or put the claimant under pressure. They believe that if the claimant badly needs financial support, or if the claimant is extremely anxious about getting any kind of payment at all, he or she may accept a lower payment. 
  • Punishing the claimant. In some cases, insurance companies have delayed the payments of claimants who have fought hard to get the correct payout—or who rejected small or unfair payments early in the settlement process. These seem to be purely punitive payment delays. 

Claim processing and payment delays are wrong and illegal. If you believe that an insurance company is acting in bad faith in the wake of your Washington accident and injury, call a Seattle bad faith insurance lawyer today to discuss your case: 1.800.636.3676. 

Category: Insurance Coverage Disputes & Bad Faith Claims


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