It is a common refrain; the insurer is slow in processing my company’s claim.

This is a double-edged sword. Insurers have a duty to independently investigate a claim and failure to do so can result in liability to the insurer. See Wilson v. 21st Century Ins. Co., 42 Cal. 4th 713, 68 Cal. Rptr. 3d 746, 171 P.3d 1082 (2007). Such investigations can take time. It may require independent experts, valuations, or, in many cases, simply organizing documents correctly.

The need for an independent investigation, however, is not carte blanche for a carrier to dawdle. “The duty of good faith requires the insurer not only to conduct a thorough investigation but also to complete the investigation promptly.” 1 New Appleman on Insurance Law Library Edition § 4.06 (2026). Indeed, states often set timelines on the time for an insurer to complete its investigation. See Okla. Stat. tit. 36, § 1250.7 (60 days).

Policyholders should expect prompt responses from their insurers. Undue delay may be cause for bad faith, especially where the loss is known by the insurer to be acute.