Can You Sue Your Insurer for Delaying Your Claim in Colorado?

When disaster strikes, whether it's a car accident, property damage, or a serious injury, you turn to your insurance company for help. That’s what you pay them for. But what happens when your insurer drags its feet? If your claim is being unreasonably delayed, you may wonder whether you have any legal recourse. The answer in Colorado is yes.

At the Law Office of James Colgan, we help policyholders throughout Colorado hold insurance companies accountable when they put profits over people. If you believe your insurer is stalling or intentionally dragging out the claims process, you may be entitled to sue for insurance bad faith. In this blog, we’ll explain your rights, how the law works, and what steps to take when your claim is delayed without good reason.

What Constitutes an “Unreasonable Delay” in Colorado?

Colorado law requires insurance companies to handle claims promptly and fairly. This duty is spelled out in both statutory and common law, including Colorado Revised Statutes §10-3-1115 and §10-3-1116. According to these statutes, it is unlawful for an insurer to:

• Delay payment of a claim without a reasonable basis
• Deny a claim without conducting a reasonable investigation
• Fail to respond within a reasonable time frame

If your insurance company is ignoring you, requesting endless documents, or failing to explain the status of your claim, those actions may qualify as an unreasonable delay and potentially, bad faith.

Examples of Bad Faith Delay Tactics

Here are some common signs that your insurer may be acting in bad faith by delaying your claim:

• Failing to return calls or respond to emails
• Constantly changing adjusters, causing your claim to start over
• Requesting redundant or irrelevant documentation
• Blaming delays on internal “processing issues” without explanation
• Offering to settle for a fraction of the claim amount after months of stalling

These delay tactics aren’t just frustrating; they’re illegal under Colorado law if they lack justification. The longer an insurer delays payment, the more financial strain you may experience. In some cases, those losses are recoverable in court.

Your Legal Rights Under Colorado Law

Colorado gives policyholders powerful tools to fight back against insurers who delay claims without a valid reason. If you can prove that your insurer acted unreasonably, you may be entitled to:

• Two times the covered benefit: Under CRS §10-3-1116, successful plaintiffs can recover double the unpaid benefit.
• Attorney’s fees and court costs: So you’re not burdened financially for seeking justice.
• Additional compensation for consequential damages: If the delay caused you to suffer additional financial harm (e.g., eviction, foreclosure, credit damage), you may be able to recover those losses as well.

If the conduct was particularly egregious or intentional, a separate common law bad faith claim may allow you to seek punitive damages.

When Is a Delay “Reasonable” vs. “Unreasonable”?

Not all delays are illegal. Insurance companies are allowed to take time to investigate and evaluate a claim, but only when there’s a legitimate reason. Delays are considered reasonable if:

• There are complex questions of fact or coverage that need time to resolve
• You submitted incomplete documentation
• The insurer is actively working on the claim and communicates updates

However, if the insurer is using these reasons as an excuse or engaging in a pattern of obstruction, the delay may cross the line into bad faith.

Steps to Take If Your Claim Is Being Delayed

If you suspect your insurer is unfairly delaying your claim, here’s what you should do:

1. Document everything: Keep a record of all communications, requests, and delays. Save emails, voicemail transcripts, and response times.
2. Review your policy: Understand what your insurance covers and what deadlines apply to both parties.
3. Send a written demand: Formally request an explanation for the delay and ask for a specific timeline to resolve your claim.
4. Speak with a lawyer: A qualified insurance bad faith attorney can evaluate your case and take immediate action to protect your rights.

How the Law Office of James Colgan Can Help

At the Law Office of James Colgan, we know how to deal with uncooperative insurers. We’ve taken on large companies who thought they could delay, deny, or lowball their way out of legitimate obligations. Our team will:

• Investigate your claim delay
• Analyze your policy and insurer conduct
• Negotiate directly with the insurance company
• File a bad faith lawsuit if needed to get the compensation you deserve

Don’t let the insurance company use delay as a tactic to wear you down. We’ll fight to hold them accountable and recover what you’re rightfully owed, plus any penalties they deserve for violating the law.

Call the Law Office of James Colgan Today for Support

If your insurance company is dragging out your claim with no end in sight, you don’t have to take it sitting down. Colorado law is on your side and so are we.

Contact the Law Office of James Colgan today for a free consultation. We’ll review your situation, explain your options, and help you take the next step toward securing justice. You’ve waited long enough; now it’s time to fight back.