Bad Faith Denial of Insurance Claims

What Is a Bad Faith Insurance Denial?

A bad faith insurance denial is when an insurance company fails its duty of care to treat you and the policyholder with honesty, integrity, and fairness in settling your claim.

All insurance providers are required to:

• Investigate injury and property claims.
• Provide clear communications.
• Settle injury claims within a reasonable amount of time.

Most people expect their insurance company to act in good faith and promptly respond to an injury or property damage claim. However, when they do not, or they become unreasonable, uncooperative, or dishonest, they are acting in bad faith.

How Colorado Law Protects You

Colorado laws regarding bad faith denial of insurance claims are covered in CRS 10-3-1115 and CRS 10-3-1116. These statutes allow injured parties to file a lawsuit for any unreasonable delays or denials.

The laws allow for recovery of the original amount claimed, along with the right to pursue additional damages and related attorney fees. The laws can also provide the injured party with up to twice the original claim amount on top of any fees and attorney expenses. Additionally, in cases where it can be established that the insurance company acted with willful conduct or malicious intent, you may be entitled to punitive damages.

Common Bad Faith Insurance Tactics

Some common indications that you may be the victim of bad faith insurance tactics may include:

• Lowball offers: The insurance company is offering a settlement amount well below your actual losses.
• Unreasonable denials: The insurance company denied your claim and did not provide justification or a clear reason for the denial.
• Excessive delays: The insurance company fails to approve and process your claim within a reasonable amount of time and fails to provide valid reasons for these delays.
• Demanding excessive documentation: The insurance company is requiring extensive documentation and forms to be filed as a stall tactic.
• Misrepresentation of the policy: The insurance company is claiming the policy does not cover damages in your claim.
• Not investigating the claim: The insurance company does not review the evidence and supporting documentation provided with your claim.

Signs Your Claim May Be Denied in Bad Faith

Signs to be aware of that the insurance company might be intending to deny your claim in bad faith include many of the same tactics they use. The most common sign is unreasonably long processing delays for the claim.

Other signs can include:

• Attempting to shift blame: The insurance company may say you are at fault, even when you are not, to deny the claim.
• Changing their reasoning for delays: The insurance company may change the reasons your claim is taking so long to process as you provide more documentation and information.
• Changing their reasons for wrongful insurance denials: The insurance company keeps coming up with new reasons to deny your claim after appealing and providing the documentation they demanded.
• Ghosting you: The insurance company is not taking your calls or responding to voicemail or email messages.
• “Passing the buck”: The insurance adjuster you speak to says your claim was handled off to another adjuster. Yet, when you speak to them, they tell you the same thing.

How a Bad Faith Insurance Lawyer in Colorado Can Help

An experienced bad faith insurance lawyer in Colorado can provide the legal assistance and guidance you need to fight bad faith and wrongful insurance denials. Some of the many ways they help include:

• Reviewing your policy, coverage, and caps to verify your claim is valid.
• They can easily recognize the signs of bad faith tactics used by insurance companies.
• They deal directly with the insurance company on your behalf, demanding a timely response and fair settlement.
• They gather all the evidence needed to establish bad faith practices and build a strong case.
• They handle all legal paperwork and documentation filings with the appropriate court.
• They handle all arbitration and mediation negotiations to attempt to reach a reasonable settlement.
• They represent your interests in court and litigate against the insurance company.
• They ensure you receive maximum compensation, not only for your original claim, but also for any additional damages allowed under Colorado laws.

Steps To Take After a Bad Faith Denial in Colorado

After being notified of a bad faith denial in Colorado, it is crucial to take the following steps:

• Obtain a copy of your policy showing what coverages you have.
• Keep all claim forms and correspondence from the insurance company about your claim, including the denial letter.
• Preserve all evidence from the original claim, including medical bills, medical records, and lost wages.
• Contact a bad faith attorney in Colorado for a free consultation and assistance in filing your appeal.
• Have your attorney file an appeal with the insurance company.
• Have your lawyer assist you in filing a formal complaint with the Colorado Division of Insurance (DOI), which will initiate a formal investigation into the insurance company.
• Have your lawyer file a formal lawsuit and demand for payment against the insurance company.

Contact a Bachus & Schanker Bad Faith Claim Attorney

Some of the reasons to consider Bachus & Schanker for your bad faith denial case include:

• Free case evaluations and consultations.
• Takes cases on a contingency fee basis with no upfront retainers.
• Expertise with bad faith insurance cases.
• Top 1% of the top 100 lawyers with recognition from the National Association of Distinguished Counsel and the American Trial Lawyers Association.
• Client-focused, personalized approach with a dedicated lawyer and legal team.
• Available 24/7.
• We can meet you anywhere, including virtually, at your home, or the hospital.
• Free access to our independent Victim’s Advocate team for catastrophic and wrongful death cases.

We also have multiple office locations in Colorado, including:

• Denver
• Aurora
• Englewood
• Colorado Springs
• Fort Collins
• Boulder
• Broomfield
• Grand Junction

If you are receiving low-ball offers from the insurance company, being given the run-around, or have received a bad faith denial of your claim, our bad faith insurance attorneys are here to help. Schedule your free case evaluation and consultation with our Colorado personal injury law firm now.

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