Don’t Be a Victim Twice: How to Fight Back Against Insurance Company Delay and Deny Tactic
The Silent Struggle After the Storm: When Your Insurance Company Becomes the Adversary
The immediate aftermath of a serious accident is a blur of shock, pain, and uncertainty. You’re dealing with physical injuries, emotional trauma, and the mounting pressure of medical bills and lost wages. In this moment of extreme vulnerability, you expect the insurance company—the one you’ve paid premiums to for years—to be your safety net. Unfortunately, for many victims of catastrophic injuries, this is the moment a second battle begins.
This battle is often quiet, fought not in an emergency room but through a frustrating series of phone calls, emails, and letters. It’s a battle against confusing jargon, endless requests for documentation, and a pervasive sense that you’re being stonewalled. These aren’t random administrative hurdles; they are often part of a deliberate strategy known as “delay and deny.”
This article is for you if you’re feeling lost in this struggle. It’s for the successful professional, the business owner, the high-net-worth individual who suddenly finds their future hanging in the balance because an insurance carrier is refusing to honor its obligations. You understand the value of expert guidance in your professional life, and the same principle applies here. We will pull back the curtain on the tactics insurers use, explain the laws that are supposed to protect you, and outline a clear strategy for fighting back. Your focus should be on your recovery; let us arm you with the knowledge to ensure you aren’t victimized a second time by the very system designed to protect you.
What Are “Delay and Deny” Tactics?
At its core, “delay and deny” is an umbrella term for a range of strategies insurance companies employ to minimize their financial payouts or avoid paying a legitimate claim altogether. While insurers have a right to investigate claims, these tactics cross the line from due diligence into bad faith. The business model of an insurance company is simple: collect more in premiums than they pay out in claims. This profit motive can, and often does, create a direct conflict of interest with your right to fair and prompt compensation.
For victims of serious accidents—those involving traumatic brain injuries, spinal cord damage, or long-term disabilities—the stakes are immense. The lifetime cost of care can run into the millions, and a denied or underpaid claim can be financially devastating. Insurers know this. They also know that the longer they hold onto their money, the more they earn through investments. Furthermore, they understand that creating frustration and financial pressure can force a desperate victim to accept a lowball settlement offer that is a fraction of their claim’s true value.
Common Delay Tactics: A War of Attrition
Delay tactics are designed to wear you down. The goal is to make the process so arduous and lengthy that you simply give up or accept an inadequate offer out of sheer exhaustion.
- Unreasonable Requests for Information: The adjuster may ask for mountains of paperwork, much of which may be irrelevant or duplicative. They might demand every medical record you’ve ever had, even for unrelated conditions, hoping to find a pre-existing issue they can use to deny the claim.
- Constant Adjuster Rotation: You may find your claim is passed from one adjuster to another every few weeks. Each new person claims to be “getting up to speed,” forcing you to retell your story and resubmit documents, causing significant delays and immense frustration.
- “Investigation is Ongoing”: This is a common refrain used to justify months of inaction. While a reasonable investigation period is expected, insurers may hide behind this excuse for an indefinite amount of time without providing any substantive updates or reasons for the delay.
- Ignoring Communications: One of the most maddening tactics is simply being ignored. Your calls go to voicemail, your emails receive no reply, and you’re left in the dark about the status of your claim. This is a deliberate strategy to create a sense of hopelessness.
Common Deny Tactics: Building a Wall of Rejection
Denial tactics are the insurer’s attempt to create a justification—any justification—for not paying your claim. These are often based on misinterpretations of the policy, the law, or the facts of your case.
- Misrepresenting Policy Language: The adjuster may claim your policy doesn’t cover the specific circumstances of your accident, even when it clearly does. They rely on the fact that most people don’t read or understand the dense, legalistic language of their insurance contracts.
- Blaming a Pre-Existing Condition: As mentioned, insurers will scour your medical history for any prior injury or condition. They will then argue that your current pain and suffering are due to this old issue, not the recent accident, in an attempt to deny coverage.
- Disputing Liability Unreasonably: Even in cases with clear evidence, like a rear-end collision where the other driver was ticketed, the insurer may deny the claim by alleging you were somehow at fault. They might argue you stopped too suddenly or had a broken brake light, regardless of the facts.
- Using a “Low-Impact” Defense: In car and truck accidents, insurers frequently argue that if there was minimal damage to the vehicles, you couldn’t have sustained a serious injury. This ignores modern vehicle safety design and the complex nature of biomechanical injuries, especially traumatic brain injuries, which can occur without significant vehicle damage.
- The Recorded Statement Trap: An adjuster will often pressure you for a recorded statement early on, framing it as a routine step. Their goal is to get you to say something—anything—that can be used against you later. They will ask leading questions to elicit responses that can be twisted to suggest you weren’t seriously injured or were partially at fault. You are under no obligation to provide one, and you should never do so without consulting an attorney. Ask us why you should never give a recorded statement.
Your Legal Shield: Colorado’s Bad Faith Insurance Laws
Thankfully, you are not powerless. Colorado has specific statutes in place to protect consumers from these predatory practices. The most critical of these is the prohibition against unreasonable delay or denial of insurance benefits (C.R.S. §§ 10-3-1115 and 10-3-1116).
Under these laws, an insurance company acts in bad faith if it delays or denies payment of a claim without a reasonable basis. This is a crucial distinction. An insurer can deny a claim if it has a fair, evidence-based reason to do so. But it cannot deny a claim based on speculation, a biased investigation, or a deliberate misreading of the law or policy.
If it is proven that an insurer has unreasonably delayed or denied your claim, the law allows you to sue for more than just the original benefits you were owed. A successful bad faith claim can result in a penalty against the insurance company of two times the covered benefit, in addition to the benefit itself, plus attorney’s fees and court costs.
This powerful legal tool is designed to level the playing field. It creates a significant financial disincentive for insurance companies to engage in delay and deny tactics. It transforms your claim from a simple request for payment into a potential multi-million dollar liability for the insurer, forcing them to take you seriously.
Case Study: Turning the Tables on a Denial
Consider the case of a successful Denver-based architect who suffered a traumatic brain injury (TBI) when a commercial truck ran a red light. His medical bills exceeded $500,000, and his cognitive impairments meant he could no longer run his firm. The trucking company’s insurer initially offered a paltry $25,000, claiming his TBI was “exaggerated” and citing a “low-impact” collision.
They delayed for months, demanding endless neuropsychological exams with doctors of their choosing. They issued a “Reservation of Rights” letter, a tactic used to create uncertainty and suggest they might not cover the claim at all.
This is where expert legal intervention became critical. By retaining a firm specializing in catastrophic injuries, the architect was able to turn the tables. His legal team hired independent accident reconstructionists and top neurologists to provide objective evidence of the crash severity and the TBI’s devastating impact. They documented every instance of delay and every unreasonable demand from the insurer, building a powerful case for bad faith. Faced with a lawsuit that included not only the multi-million dollar injury claim but also the threat of a bad faith verdict doubling that amount, the insurer’s position crumbled. The case settled for an amount that ensured the architect’s lifetime care, secured his family’s future, and compensated him for the loss of his life’s work.
This is the power of understanding your rights and having an expert advocate on your side. You can learn more about our approach to complex cases involving traumatic brain injuries.
How to Fight Back: A Strategic Action Plan
If you suspect you are a victim of delay and deny tactics, do not lose hope. Take strategic, deliberate action to protect yourself and your claim.
1. Document Everything
From the very first phone call, create a detailed log of every interaction with the insurance company.
- Who you spoke to: Get their full name, title, and direct phone number.
- Date and time of the call.
- What was discussed: Summarize the conversation, including any promises or statements made by the adjuster.
- Follow up in writing: After a phone call, send a brief, polite email confirming your understanding of the conversation. This creates a paper trail and prevents the adjuster from later denying what was said.
Keep a file of every letter, email, and document you receive or send. Organization is your best defense.
2. Never Give a Recorded Statement
When the adjuster calls and says, “I just need to get a brief recorded statement to process your claim,” your answer should be a firm but polite, “No.” You are not required to provide one. These statements are tools used to damage your claim, not to help it. Politely decline and state that all future communications will be handled by your legal counsel.
3. Understand Key Documents
If you receive a Reservation of Rights letter, do not ignore it. This is a formal notice that the insurance company is investigating your claim but reserves the right to deny coverage later. It is a significant red flag that they are actively looking for a way out of paying. You need to understand what this means for your claim and how to respond.
4. Set a Professional and Firm Tone
While it’s easy to let frustration take over, always communicate with the insurer calmly and professionally. However, do not be a pushover. If they promise a call back by Tuesday, and you don’t hear from them, call them on Wednesday. Show them you are organized, diligent, and will not simply go away.
5. Seek Expert Legal Counsel Immediately
This is the single most important step you can take. The insurance industry has teams of experienced lawyers and adjusters dedicated to minimizing payouts. You are at an extreme disadvantage trying to navigate this complex system alone, especially while recovering from a serious injury.
An experienced personal injury attorney who specializes in catastrophic cases understands these tactics intimately. They can:
- Immediately take over all communication with the insurer.
- Prevent you from making common mistakes, like giving a recorded statement.
- Gather the necessary evidence to build an ironclad claim.
- Leverage Colorado’s bad faith laws to put maximum pressure on the insurance company.
- Ensure your claim is valued correctly, accounting for future medical needs, lost earning capacity, and long-term pain and suffering.
Final Takeaway: You Are Not Alone in This Fight
Dealing with a serious injury is overwhelming enough. You should not have to fight a second battle against an insurance company that is putting its profits ahead of your well-being. By understanding their tactics, knowing your rights under Colorado law, and engaging an expert legal strategist to advocate on your behalf, you can protect your financial future and focus on what truly matters: your recovery.
The law provides a powerful shield for victims of bad faith practices. Don’t be afraid to use it. Call Flanagan Law now at 720-928-9178 for your free, no-obligation consultation. We handle the legal complexities with expert aggression so you can focus on healing, confident that your future is being protected.
Sources & Further Reading
- Colorado Revised Statutes, C.R.S. § 10-3-1115. Unreasonable delay or denial of benefits—cause of action. This statute outlines the legal framework for bad faith claims in Colorado.
- Colorado Revised Statutes, C.R.S. § 10-3-1116. Remedies for unreasonable delay or denial of benefits. This statute specifies the penalties for insurance companies found to have acted in bad faith, including the provision for two times the covered benefit.
- American Association for Justice (AAJ). The Ten Worst Insurance Companies in America. This report details common tactics, including delay and deny strategies, used by major insurers.
- Irvin E. Schermer & William J. Schermer, Automobile Liability Insurance 4th, § 20:6. Bad Faith in First-Party Cases – Unreasonable Delay in Payment. A leading legal treatise on insurance law and bad faith claims.
Frequently Asked Questions
1. How long is too long for an insurance company to investigate my claim? While there’s no exact timeline set in stone, a “reasonable” investigation in a complex injury case might take a few months. However, if the insurer is not communicating with you, not providing reasons for the delay, or letting your claim languish for six months or more without substantive action, it could be considered an unreasonable delay.
2. What if I already gave a recorded statement? If you’ve already given a statement, don’t panic. While it’s not ideal, it doesn’t automatically ruin your case. It is crucial, however, that you contact an experienced attorney immediately. They can obtain a copy of the statement, assess any potential damage, and develop a strategy to mitigate its impact.
3. Can I sue my own insurance company for bad faith? Yes. Bad faith claims can be brought against your own insurer (a “first-party” claim) or against the at-fault party’s insurer (a “third-party” claim). If your own insurance company is unreasonably delaying or denying benefits under your policy, such as Uninsured/Underinsured Motorist (UIM) coverage, you have the right to take legal action against them.
4. The insurance company’s settlement offer seems very low. Is this a “deny” tactic? Yes. A “lowball” offer is a classic tactic. It’s a form of denial because the insurer is effectively denying the true value of your claim. They make an unreasonably low offer hoping your financial desperation or lack of knowledge about your claim’s worth will lead you to accept it. Never accept an initial offer for a serious injury without a thorough review by a qualified attorney. Contact us to discuss your case and learn how we can help you.
5. What should I do if the insurance adjuster is being friendly and seems helpful? Be cautious. Insurance adjusters are trained to be personable and build rapport. Their goal is to gain your trust to get you to provide information that can be used to limit your claim. While some adjusters may be pleasant individuals, always remember their ultimate loyalty is to their employer’s bottom line. Maintain a professional and guarded approach and refer them to your attorney.
