Insurance Bad Faith

When you have an insurance policy to cover damages caused by negligence, fire, flood, or another disaster, you rely on the insurance company to investigate and evaluate the claim. 

The state requires insurance that covers most types of losses, so you should expect that the insurance company will diligently assess the damages based on your insurance contract. 

Insurance Company Responsibilities

Colorado requires insurance companies to investigate claims promptly. The investigation must be fair, comprehensive, and unbiased. During the insurance claim, from submission to final determination about payment of damages, the insurance company must communicate effectively and in a timely fashion with the covered parties.

When the company concludes the investigation, they must affirm or deny the claim and provide an explanation for their decision. If the insurance company has approved the claim, they must then pay the appropriate benefit shortly after that.

Insurance Bad Faith

Insurance bad faith is the willful and deliberate violation by the insurance company of their obligations and responsibilities under the contract. Insurance bad faith occurs when the insurance company:

  • denies claims without investigation
  • delays payments of damages
  • lowballs settlement offers
  • makes payments in smaller amounts than required by the contract
  • delays investigations
  • communicates ineffectively or delays communications for a lengthy period
  • refuses to pay benefits, even when there is sufficient evidence to require payment

Statute of Limitations

In Colorado, the statute of limitations for insurance bad faith claims is two years from the date of the bad faith conduct. Because bad faith claims can include delays, it can be difficult to determine when the bad faith conduct began. 

If you believe your insurance company is acting in bad faith, contact the Law Offices of James Colgan. We can prevent your case from being dismissed for late filing.

Suing for Insurance Bad Faith

When your insurance company fails to comply with their obligations and responsibilities, you can sue for bad faith. Only the insured or the party to whom the benefits are to be paid on behalf of the insured can sue an insurance company for bad faith.

A successful suit will show that the insurance company unreasonably delayed or denied the benefits owed and that the insurance company had no basis for delaying or denying the claim.

In Colorado, insurance companies can defend their denial of benefits only with the information known at the time of the denial. Information obtained during investigations conducted after the denial and the filing of the bad faith lawsuit is not applicable. 

The Law Offices of James Colgan are experienced with Insurance Bad Faith law. We can help you communicate with your insurance company, and proceed with negotiations or a lawsuit.

Damages

If the court finds that the insurance company acted in bad faith, the damages will include attorney fees, court costs, and payment up to two times the covered benefit. The insurance company will pay these damages in addition to the covered benefit. The insurance company could also be required to pay punitive damages if fraud or malice influenced the bad faith acts.

Contact the Law Offices of James Colgan today at 1(303) 990-0261 to find out how we can get you the compensation you deserve.