Insurance bad faith is when an insurance company engages in dishonest dealings or a breach of the insurance contract. From intentionally taking too long to pay a claim to refusing to properly defend a policyholder from other claims, there are different ways insurance bad faith can manifest.
As a paying policyholder, you can reasonably expect your insurance provider to hold up on their end of your contractual agreement. Insurers have a duty of care to practice Good Faith and Fair Dealing. The truth is that Insurance companies have many tactics they use to avoid paying people and keep their costs low. Unfortunately, many people have to learn this the hard way. The good news is that Colorado Springs law provides protections to car and homeowners who run into insurance bad faith practices.
If you suspect your insurance company has been acting in bad faith, call our Colorado Springs Bad Faith Insurance Attorneys. We can help investigate your case to uncover the truth and help understand your rights. If it turns out your insurance company is acting in bad faith, we can help guide you through the legal process.
Examples of Insurance Bad Faith Insurance
Here are some common examples of bad faith insurance practices:
- Denying a claim without giving a valid reason
- Failure to conduct a complete investigation in a reasonably timely manner
- Avoiding payment within a reasonable time frame
- Knowingly offering less than the claim is worth
- Delaying a claim on purpose
- Denying a claim or request for medical treatment
- Outright refusing to pay a valid claim
- Threatening a policyholder
- Misrepresenting the law or the language in the policy
- Prioritizing their profits over a policy holder’s claim
- Refusing to provide documentation
- Any other deceptive or unfair tactics used by the insurance company
As a paying policyholder, you expect your insurance company to cover you after an accident. That’s the point of insurance. When they don’t honor their promise, our Colorado Springs Bad Faith Insurance Attorneys can help make sure you get taken care of.
How Do Bad Faith Insurance Claims Work in Colorado Springs?
Bad faith insurance lawsuits in Colorado are civil claims. They have two parts: first, the insured party will send a demand notice for the payment they should have received according to the policy. Then, they will make an additional claim for the insurance company’s bad faith.
So the insured party will receive financial compensation for the original claim in addition to the damages from the insurance company’s unreasonable actions.
What Damages Can You Recover in a Colorado Insurance Bad Faith Case?
Damages you may be eligible to recover in a bad faith claim can be classified as either economic or noneconomic damages. Economic damages are monetary damages you suffered as a direct financial loss due to the insurance company’s bad faith. Noneconomic damages will compensate you for non-financial damages, such as pain and suffering you endured from their conduct.
Examples of Different Types of Economic Damages
- Out of pocket costs you incurred due to the insurance company refusing to pay (such as medical bills)
- Lost income due to injuries you suffered while waiting on the insurance company’s response
- Any attorney fees associated with the bad faith lawsuit
Examples of Non Economic Damages
- pain and suffering that you endured because of the denial of medical treatment
- Any worsening of an injury and additional, unnecessary pain and suffering you experienced because of the delay
- Emotional distress you experienced due to your insurance claim getting denied or getting a lowball offer
A Colorado Springs Bad Faith Insurance Attorney who is well-versed in Colorado insurance laws can help you identify all damages you can claim.
Legal Precedence for Bad Faith Insurance Claims in Colorado
Colorado law provides broad protections for policyholders who endure bad faith practices. There are two legal grounds that a policyholder can make a claim on:
- Common law basis
- And statutory basis
Common Law Basis for Insurance Bad Faith Claims
The common law basis for bad faith claims is explained in the Colorado court case Goodson v. American Standard Insurance Co. The Colorado supreme court overruled a court decision that required the plaintiff to show substantial losses as a prerequisite for seeking bad faith damages. In doing so, the supreme court asserted that unreasonable denial of benefits can cause undue anxiety, fear, stress, and uncertainty, even if the insurer eventually pays the benefits. Since policyholders purchase insurance as a security network that should provide peace of mind, the court ruled that emotional distress is a likely and foreseeable damage that results from bad faith denials or contractual breaches.
Under a common law bad faith claim, the victim must provide evidence that the insurance company unreasonably refused, delayed or denied a payment. Then, based on the evidence, the court will make a ruling regarding payment.
Statutory Basis for a Colorado Springs Bad Faith Insurance Claim
Colorado law regarding a statutory basis for a bad faith insurance claim is outlined in Colorado law 10-3-1115.
This law prohibits insurance providers from delaying or denying benefit payments to policyholders. Any unreasonable denial or delay without a reasonable basis for the decision is a legal violation.
Unlike a common law action, which requires evidence to prove the company acted in bad faith. However, statutory claims are usually based on a lower standard of proof.
This is why you need a. Experienced Colorado Springs bad faith insurance lawyer who can help you understand how Colorado’s bad faith insurance laws apply to your case.
How Can A Colorado Springs Bad Faith Insurance Attorney Help Me?
A Colorado Springs Bad Faith Insurance Attorney can help assist you with every step of the process during a bad faith claim. Here are something a Colorado Springs Bad Faith Insurance Attorney can do on your behalf:
- Investigate your case to determine if bad faith occurred
- Help you understand the law and how to interpret it regarding your case
- Prepare and issue a demand letter to the insurance company
- Negotiate with the insurance company directly
- Gather evidence
- Devise a tactical legal strategy
- Prepare legal documents that are required for court
- Represent you in court
- Present your case if it goes to trial
- assist you with filing a claim based on every possible legal grounds
- Better your odds of maximum compensation
Why Choose Our Colorado Springs Bad Faith Insurance Attorneys?
Our Colorado Springs Bad Faith Insurance Attorneys are trained advocates who will represent you with determination. If you think you were the victims of insurance bad faith practices, we want to help you.
Contact Our Colorado Bad Faith Insurance Lawyers for a Free Consultation
We have multiple locations across Colorado and are ready to serve you. We understand how frustrating and unfair it is to deal with unethical insurance companies. That’s why we’ll fight hard for you to get the compensation you deserve.
Call us today to get started with your free initial consultation.