FAQ

Insurance claim denial representation in Missouri

 Our Kansas City law firm fights insurance companies in Missouri & Kansas every day and we have experience successfully suing insurance carriers on our clients’ behalf


Why do Missouri insurance companies, their adjustors, and their administrators frequently attempt to delay settling a claim or lawsuit or outright deny the claim?


Personal injury, wrongful death, and property claim clients often ask why a Missouri insurance auto, home, commercial, or professional company goes to so much effort to delay paying out what they rightfully owe on a claim or lawsuit.  The answer is simple – delaying payment is profitable.  


First, denying claims often results in people giving up.  The insurance company didn’t forget to collect their premiums, but when it comes time to pay a valid insurance claim, Missouri insurance carriers often come up with creative ways to deny claims, often citing policy provisions or policies that are in direct violation of Missouri insurance law.  


Second, delaying payment on a claim or lawsuit (part of the “3D’s”) helps wear down injured plaintiff’s/claimants in a Missouri personal injury case or wrongful death case.  This often results in a lower payment later on because folks either get tired of fighting with the insurance company or they are forced into a position that results in them having little choice but to accept less than a fair settlement amount.


Third, delaying payment on a Missouri claim or lawsuit earns interest.  Insurance companies often handle tens of thousands of claims each year, totaling millions and perhaps even hundreds of millions of dollars in potential payouts.  


Lets do some rough math:  Assume that a Missouri insurance company plans on paying out $100,000,000 in a given year, an average of $8,333,333.33 per month.  For the sake of making the math easy, lets also assume that the insurance carrier can earn 10% interest on its money through its investments.  

If the insurance company can consistently delay payment on all of their claims an average of 30 days, then the math works like this:

8,333,333.33 (1/12 of the yearly claim/lawsuit payouts) * .10 = $833,333.33 in profit per year.

If the insurance company can consistently delay payment on all of their claims an average of 90 days, then the math works like this:

$25,000,000.00 (1/4 of the yearly claim/lawsuit payouts) *.10 = $2,500,000.00 in additional profit per year

Finally, if the insurance company can consistently delay payment on all of their claims for an average of a year, the math works like this:

$100,000,000.00 (yearly claim/lawsuit payouts) * .10 = $10,000,000.00 in additional profit per year.


The math doesn’t lie – insurance companies in Missouri make hundreds of millions of dollars per year by delaying paying claims and lawsuits.  Use the form below to talk to an experienced Missouri insurance attorney about your case today.


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