Despite best intentions, sometimes policyholders encounter challenges adhering to the applicable statute of limitations or their policy’s limitation of suit deadline. In complex insurance claims, identifying, comprehending, and accurately quantifying significant and long-term losses may take several years. Even when all losses are readily apparent, the insurer may invest months or years in scrutinizing the claim and finalizing the adjustment of losses, requesting policyholders to furnish extensive supplemental information related to their claim and/or sit for interviews or examinations under oath. If the insurer is investing significant time into verifying a loss, the insured may not even realize a lawsuit could be necessary and fail to consider the applicable limitation period is running and could expire prior to a formal decision on coverage from the insurer. In fact, unscrupulous insurers can sometimes use a lengthy claim investigation to their advantage to run out any applicable deadline to file suit and then deny coverage.

Reprinted courtesy of Stephanie A. Giagnorio, Saxe Doernberger & Vita, P.C. and Kelly A. Johnson, Saxe Doernberger & Vita, P.C.

Ms. Giagnorio may be contacted at SGiagnorio@sdvlaw.com
Ms. Johnson may be contacted at KJohnson@sdvlaw.com