If it feels like your insurance company is using every excuse in the book to delay settling your claim, your instincts might be accurate. While some policyholders presume that insurance companies are motivated to close claims rather than continue investigating and processing claims indefinitely, there is enormous profitability in delay. Below is an overview of the reasons insurance companies profit by delaying the settlement of claims.
- Frustration of Legitimate Claims: Insurance companies recognize that eventually policyholders may get so frustrated with claims process delays that they simply give up. While an insured should never abandon a legitimate claim, a substantial portion of insurance industry profits are based on policyholders waving the white flag, so valid claims are never paid.
- Interest and Investment Income: If insurance companies can drag out the process of paying claims, the funds that are being withheld from paying claims timely can continue to earn income from interest and investment returns.
- Running Out the Clock: An insured, generally, only has a limited amount of time in which to file a lawsuit on an insurance claim. This is referred to as a statute of limitations. If a lawsuit is not filed within the applicable statute of limitations then the insured will be forever barred from doing so.
- Financial Pressure on Policyholders: The financial pressure caused by the loss on policyholders does not abate while the claim is being processed. Insurance companies know that this financial pressure will result in insureds accepting less to settle their claim.
You can reach Miami Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Attorney Gonzalez-Sirgo directly at [email protected].