Insurance Bad Faith Lawyers in Denver, Co

What Is Insurance Bad Faith?

Insurance companies have a duty to work fairly with their customers. If you have a policy with an insurer, that contract must be honored at all times. In the event of a claim, your insurance provider must thoroughly investigate your case and communicate attentively with you. Unfortunately, the thorough investigations performed by insurance companies are almost always designed to find ways to deny or minimize legitimate claims.

When your insurer fails to honor its contractual obligations with you, you may have a claim for bad faith. Successful bad faith claims hinge on the following elements:

• You and your insurer entered into a contract
• You fulfilled your contractual obligations
• All the conditions required for your insurer to act had occurred
• Your insurer unfairly interfered with your right to receive the benefits of your contract
• You were harmed by the conduct of your insurance company

Insurance bad faith claims typically arise when an insurance company denies, delays, or diminishes the value of your settlement. In most cases of insurance bad faith, the harm you suffer as a result of your insurer’s wrongdoing is an unjust financial burden.

Common Examples of Insurance Bad Faith

Bad faith encompasses more than just your insurance company denying your valid claim. Insurers frequently engage in behaviors that can cause harm to their customers, such as:

• Grossly understating the value of your claim
• Failing to explain your rights as a policy holder
• Changing the terms of your policy agreement without your knowledge or consent
• Unreasonably interpreting policy language
• Delaying an investigation without cause
• Unjustly delaying a payment
• Poorly or inadequately investigating a claim

It’s normal for there to be some back-and-forth negotiations between you and an insurance adjuster. You and the adjuster may disagree on the value of your claim and you may not be offered what you think you deserve. These disputes alone do not necessarily constitute bad faith.

However, there is common misconception that insurance companies have a right to low-ball claims. They do not have the right to pay less than the value of a claim. If you believe your claim is being unjustly denied and grossly reduced, contact our office.

First-Party Bad Faith Claims

First-party bad faith occurs when your insurance company fails to settle your claim in a reasonable amount of time or for a reasonable amount of money. This includes a variety of behaviors we have discussed above, such as unreasonably denying a claim, prolonging payment, proposing an unreasonably low settlement amount, and more.

Third-Party Bad Faith Claims

While first-party bad faith is characterized by an insurance company’s misconduct toward its own policyholder, third-party bad faith relates to claims made against someone else’s insurer. This type of bad faith may occur if you’ve suffered injuries as the result of another person’s negligence; that person’s insurance company is liable for your damages.

Some examples of third-party bad faith include:

• Refusing to defend a lawsuit
• Undo delay
• Threatening the insured parties
• Inadequately investigating a claim
• Refusing to make a reasonable settlement offer

If a third party’s insurance company commits any of the actions listed above, it can be held liable for bad faith. 

Car Insurance Bad Faith

For most people, car travel is a daily part of life. Colorado law requires every driver in the state to carry liability insurance, but there are other types of policies many drivers choose to carry, such as:

• Comprehensive coverage
• Uninsured motorist
• Towing/rental car

If you’ve been injured in an accident, you rely on insurance to do the right thing and treat you fairly. You may be facing mounting medical bills, pain and suffering, and time away from work that you and your family can’t afford. Unfortunately, insurance companies often put their best interests before yours, and offer you far less than you need or nothing at all.

You don’t have to accept whatever the insurance company offers you. Our knowledgeable attorneys can help you pursue the full and fair compensation you need to get back on track.