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What Happens if an Insurance Company Denies a Claim?

When you get injured at work, in a car accident, or in almost any other scenario in which someone else is responsible for your losses, recovering compensation typically involves filing an insurance claim. So, what happens if the insurance company refuses to pay? Unfortunately, the Wisconsin personal injury attorneys at Studinski Law, LLC have seen this scenario far too often. 

While insurance companies are supposed to pay what they owe, many people struggle to secure coverage. Insurance claim denials are common, and in many cases, these denials are wrongful. If you believe that you have been treated unfairly, it may be in your best interest to speak with an experienced attorney.

Our attorneys know the tactics used by insurance companies to delay, diminish, or outright deny claims. We are committed to helping clients pursue the maximum compensation to which they may be entitled under the law. 

5 Important Facts about Insurance Claim Denials

Dealing with an insurance claim denial can be a challenging situation. If you are dealing with this situation, here are five important facts you should know: 

1. Wrongful Insurance Claim Denials are Common

You are not alone in dealing with a wrongful insurance claim denial. Even though insurance companies in Wisconsin have a legal obligation to handle all claims in good faith, some companies are well-known for engaging in bad faith insurance practices. 

But, even if the insurance company is not acting in bad faith, this does not necessarily mean that your denial is justified. Sometimes, insurance companies simply get it wrong. Regardless of why you think the insurance company has denied your claim, you should not give up if you believe you are entitled to coverage.  

2. Some Insurance Claim Denials are Legitimate 

While many insurance claim denials are wrongful, some are not. In some cases, claimants simply are not entitled to coverage. For example, if you waited too long to file your insurance claim, then your right to receive compensation may have expired. 

3. You Should Not Simply Accept the Insurance Company’s Decision

No matter why the insurance company denied your claim (or what excuse it gave), you should not simply accept the insurance company’s decision. Even if the insurance company says you waited too long to file, this may or may not be true. If you are entitled to coverage, you need to keep fighting, as securing just compensation could be critical for your long-term health, emotional wellbeing, and financial stability. 

4. Bad Faith Insurance Practices Can Lead to Additional Compensation

When insurance companies deny claims in bad faith, claimants can seek additional compensation under Wisconsin law. In some cases, punitive damages are also available. If you have a bad faith insurance claim, an attorney can help you hold the insurance company accountable and seek all available damages on your behalf.

5. You Can Hire an Attorney at No Out-of-Pocket Cost

You do not have to fight your insurance claim denial alone. You can hire an attorney to represent you at no out-of-pocket cost. At Studinski Law, LLC, we provide free consultations and contingency-fee representation, and we may be able to recover your legal fees from the insurance company as well. 

Steps to Take After an Insurance Company Denies a Claim

When dealing with an insurance claim denial, there are some steps you should take promptly. Here is what you should do if an insurance company has denied your claim for coverage:

• Collect Your Documentation – Take some time to collect all of the documentation you have that relates to your claim. This includes letters, emails, text messages, photographs, and any voicemails you have saved on your phone. 
• Write Down a Chronology of Events – Record the timeline of your insurance claim with as much detail as you can remember. Use the documentation you collected to make a list of important dates and events. 
• Write Down Why You Believe the Denial May Be Wrongful – Separately write down all the reasons why you believe your insurance claim denial may be wrongful. Did the insurance company refuse to negotiate or consider relevant evidence? Did it fail to provide a reason for the denial? Whatever the case may be, this will be key information to discuss with your attorney. 
• Talk to an Attorney – You should schedule a free consultation with a Wisconsin personal injury attorney promptly. Even if you still have plenty of time to assert your legal rights, acting promptly could improve your chances of a swift recovery. 
• Work with Your Attorney to Secure Compensation – If your attorney determines that you have a claim for a wrongful denial, you should be prepared to work with your attorney as he or she fights for just compensation on your behalf. 

Speak with a Wisconsin Personal Injury Attorney for Free

If you need to know more about what happens when an insurance company denies a claim, we invite you to schedule a free consultation at Studinski Law, LLC. Our Wisconsin personal injury attorney will listen to your side of the story and explain your rights and legal options.

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To speak with an experienced attorney, contact our office online or at (715) 343-2850. We serve clients in Plover, Marshfield, and all of Wisconsin.