Some insurance policyholders navigate a straightforward claims process after they experience covered losses. They document their losses, submit the necessary paperwork to the insurance company and receive a reasonable policy payout.
Other people are not so fortunate. They must deal with an insurance company using aggressive negotiation tactics to limit how much compensation they receive. They may face aggressive negotiation tactics intended to deter them from continuing the claim or to push them into accepting an unfairly low settlement.
Stonewalling is a common negotiation tactic that can be indicative of a bad faith insurance scenario, where the goal is to deny a policyholder appropriate coverage. In such cases, policyholders may need legal support.
What is stonewalling?
Stonewalling is a negotiation tactic where one party at either closes lines of communication or simply refuses to make any concessions or compromise. They are like a stone wall that refuses to move, which can stall out negotiations and leave policyholders feeling disempowered. Offering a specific amount of compensation below total losses that is also below the policy limits and then refusing to discuss why the policyholder might need more is an example of stonewalling.
Stonewalling techniques can feel very intimidating, but they often backfire on the parties that demonstrate an unwillingness to compromise. In an insurance negotiation scenario, the goal of stonewalling may be to force a policyholder to accept a low settlement without countering the amount offered.
Assessing policy paperwork and recent insurance communication with a lawyer can help people determine if their insurers have acted in bad faith by trying to unfairly delay a claim. People often need support countering aggressive negotiation tactics to protect themselves financially during insurance claims, and that’s okay.