The Colorado bad faith insurance lawyers at Bachus & Schanker, LLC, can help if you’re the victim of an insurance company’s unreasonable failure to pay a claim. If you make an insurance claim and the company refuses to pay you, our Colorado bad faith insurance lawyers are prepared to help you fight for your rights. We can assist you with taking action to receive compensation for your claim, as well as justice for bad faith insurance practices.

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What Is Insurance Bad Faith?

Insurance bad faith occurs when an insurer doesn’t promptly and fairly pay a claim. When someone takes out an insurance policy, they pay a premium. By paying their premium, the policyholder has a reasonable expectation that the insurance company is going to keep up their end of the bargain. If the policyholder makes a claim, they expect the insurance company to pay the correct amount in a reasonable amount of time. Unfortunately, too many people learn the hard way that the insurance companies have many different ways to try and avoid paying legitimate claims.

What Are Some Examples of Insurance Bad Faith?

If you’re wondering if you might have a claim, here are some examples of insurance bad faith scenarios:

  • Paying too little based on the actual value of the claim
  • Sending confusing or incorrect documents with changed deductibles and waiting periods
  • Refusing to answer phone calls, emails and messages
  • Denying a claim outright with no reasonable basis
  • Presenting false evidence or legal opinions as justification for a denial
  • Failing to give a reason for denial of the claim
  • Misrepresenting the policy language
  • Conducting a superficial or incomplete evaluation of the situation
  • Failing to pay a business interruption legal claim fairly

While these are examples of bad faith insurance practices, any deceptive or unfair tactic by the insurance company can be bad faith. What matters is whether the insurance company does things to avoid paying the appropriate amount in a reasonable time frame.

Colorado Bad Faith Insurance Lawsuits

A Colorado bad faith insurance lawsuit is a civil claim with two parts. First, the insured party demands fair payment for the amount that they should have received under their policy. Second, they make an additional claim for the insurance company’s bad faith actions in unreasonably denying or underpaying the claim. The insured party demands financial compensation, including full payment and damages for the unreasonable actions of the company.

Related: Colorado Life and Health Insurance Disputes

What Are The Types of Damages You Can Recover in an Insurance Bad Faith Case?

The monetary damages you can recover if you win a bad faith claim will come in the form of both economic damages and noneconomic damages. Economic damages compensate you for how you suffered a direct financial loss as the result of the insurer’s bad faith conduct. Noneconomic damages compensate you for any harm you endured that isn’t measured financially.

Economic damages may include:

  • Costs of medical treatment you were forced to pay out of pocket because your claim was denied
  • Lost wages you suffered because you couldn’t work
  • Attorneys’ fees for pursuing the insurance bad faith lawsuit

Noneconomic damages may include:

  • Your pain and suffering as the result of denied medical treatment
  • Your pain and suffering because a condition that was allowed to become worse
  • Emotional distress due to your insurance claim being denied

In Colorado law, there are two legal grounds for a bad faith insurance claim. There are a common-law basis and a statutory basis available to the victim. As the insured party, you may make your claim on both grounds.

The Colorado court case Goodson v. American Standard Insurance Co., 89 P.3d 409, 414 (Colo. 2014) explains the common law basis of a bad faith insurance claim. To win a common-law claim, the victim shows that the insurance company unreasonably refused or delayed payment. The insurance company must have acted unreasonably or with a reckless disregard for the truth. The court decides the case on an objective basis using the evidence and circumstances known to the insurance company at the time of the decision regarding payment.

The statutory basis for a bad faith legal claim in Colorado is Colorado law 10-3-1115. The law says that an insurer may not delay or deny payment for benefits. It also states that a denial or delay is a violation if made with an unreasonable basis for the action.

While the common law action requires an intentional or reckless disregard for the rights of the insured, Colorado statutory law requires only an unreasonable denial of benefits. An experienced attorney for bad faith insurance claims can help you understand how your circumstances apply to Colorado law. They can assist you with filing a claim based on every possible legal grounds to maximize your legal strategy and your compensation.

How a Bad Faith Insurance Lawyer Can Help You?

A bad faith insurance lawyer can assist you with every step involved with addressing and responding to insurance company bad faith. When you hire our bad faith insurance lawyers, we do all of the following on your behalf:

  • Investigate to determine if bad faith occurred
  • Help you understand the law and how it applies to your case
  • Issue a demand letter to the insurance company
  • Negotiate directly for fast resolution of your case
  • Prepare legal documents to file in court
  • Bring legal motions, prepare evidence and develop a legal strategy
  • Mediation and case resolution actions
  • Representation in court at all hearings and trial
  • Presentation of the case at trial
  • Collection of judgment

Your bad faith insurance lawyer takes carefully-crafted, appropriate action for you to receive the best possible result. They understand the law and the steps necessary to obtain justice, and they put their training and experience to work for you.

Why Choose Our Bad Faith Insurance Attorneys of Colorado?

Our bad faith insurance attorneys at Bachus & Schanker, LLC are trained and determined advocates for anyone who thinks that they may have been the victim of bad faith practices. Our leaders, Kyle Bachus and Darin Schanker are both 10-year honorees of Super Lawyers. They are also part of the National Trial Lawyers Top 100 Trial Lawyers as well as the Top Lawyers of Denver.

These recognitions are based on the personalized legal services that we provide for each and every client. We pride ourselves on helping our clients reach their legal goals in the best ways possible. When you’re done being the victim of insurance bad faith, our Colorado attorneys are here to fight for you and with you until you have justice. We represent clients throughout the State of Colorado.

Contact Our Colorado Bad Faith Insurance Lawyers

Our Colorado bad faith insurance lawyers are accepting new clients. As always, consultations are free and confidential. With multiple offices located across Colorado, our attorneys are ready to serve you and fight for the compensation you deserve. Call us today to get started!

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“…the Bachus & Schanker team provides their clients with the perfect amount of attention and are obviously passionate about what they do.”

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These guys are absolutely incredible – the Bachus & Schanker team provides their clients with the perfect amount of attention and are obviously passionate about what they do. Grateful to have them in the state of Colorado!!!
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“They were always timely in response and overall very friendly and professional always”

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What a fantastic firm! I had the privilege of working with Dave and Sofia and what a dynamic team! They kept me up to date and gave me the pros and cons of different scenarios. They were always timely in response and overall very friendly and professional always. What a dynamic team!! Thank you for all your help.
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“They are caring, professional, knowledgeable, and will aggressively fight for you.”

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Bachus & Schanker are top notch. They are caring, professional, knowledgeable, and will aggressively fight for you. I don’t know what we would have done without them!
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You Deserve Fair Compensation

Don’t let the insurance companies intimidate you into accepting less than you deserve. We’re ready to fight for you.

A headshot of personal injury attorney, Kyle Bachus.

Written and Legally Reviewed By: Kyle Bachus

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Kyle is a member of the Colorado and Florida Bar associations and has served on the Board of Directors of the Colorado Trial Lawyers Association for more than twenty years in total. Over the years, Kyle has achieved justice for many clients. He has served on numerous committees and repeatedly won recognition from his peers at both the state and national level. He is proud of the role he has played in the passage of state and national legislation to protect consumers and is a frequent speaker and guest lecturer.