Delay in Payment of Insurance Claims

Delaying the payment of your insurance claim is more than a mere annoyance. Your insurance carrier should process and pay all valid claims in a timely manner. The consequences of delaying your valid claims often cause the inability to repair your property and other inconveniences. Insurance laws prescribe set timelines for the payments of your claims and an insurance carrier who runs afoul of the law could be found to be acting in bad faith.

Insurers use various tactics to try to shift the delay of the payment to you. Among other tactics to cause delay in paying your claims insurers often; ask for unnecessary documentation before processing a claim, fail to provide explanations for the delay hoping that you will not question the late payment, state they are still investigating the claim when there is no good faith reasonable basis for doing so.

Colorado law permits a policy holder to recover double the policy benefits (plus attorney fees) in cases involving delayed or denied insurance claims. Under the applicable standard, CRS 10-3-1115/1116, the plaintiff has only to show that the denial or delay was “unreasonable.”

Click here for a free consultation with Jim Gigax