You’ve honored your policy—paid on time, followed the rules, and trusted that your insurance company would step up when something went wrong. Instead, you’re met with shifting excuses, repeated delays, or denials that don’t make sense. That’s more than a communication breakdown—a breakdown in accountability. Under Colorado law, that behavior may rise to the level of bad faith in insurance. If you’re searching for a Colorado Springs insurance bad faith lawyer, it means your insurer had likely failed you when it mattered most. At VandenBout Law, we take that seriously. We help policyholders stand up to insurance companies that ignore their obligations and put profit ahead of the people they’re supposed to protect.

What Is Insurance Bad Faith?

Understanding Bad Faith Under Colorado Law

Bad faith occurs when an insurance company breaches its duty to act reasonably and fairly with policyholders. In Colorado, this is more than unethical—it can be illegal. When an insurer wrongfully denies or delays payment or undervalues a valid claim, it opens the door for legal action under common law and Colorado Revised Statutes 10-3-1115 to 10-3-1116. The statute penalizes insurers that unreasonably delay or deny benefits owed.

First-Party vs. Third-Party Claims

In Colorado, bad faith insurance cases generally fall into two legal categories, depending on the nature of the policy and the relationship between the insurer and the claimant:

• First-party claims involve disputes between you and your insurance provider over benefits owed directly to you under your policy. Common examples include claims related to hail or wind damage to your home, auto accidents, or personal injury medical payments. When your insurer underpays, delays, or denies these claims without reasonable cause, it may constitute first-party bad faith.
• Third-party claims: These arise when your insurer is obligated to defend or indemnify you against a claim brought by another person—such as in an auto liability case where you’re being sued. If your insurer refuses to defend you, fails to settle when it should, or exposes you to a judgment beyond your policy limits, it could be acting in bad faith. These cases are particularly serious because they risk your financial well-being and legal standing.

Signs of Insurance Bad Faith Practices

Claim Denials Without Valid Reason

A denial without a clear, written justification is a major red flag. Insurers are required by law to investigate thoroughly and respond within a reasonable timeframe. You may face bad faith behavior if you skip steps, ignore evidence, or simply state “not covered” without proof.

Delays, Low Offers, and Misrepresentation

When an insurance company begins to stall, shift blame, or manipulate policy language, it’s more than a customer service failure—it can be an intentional strategy to reduce payouts. Prolonged silence, excessive paperwork requests, or sudden policy reinterpretations are not just inconvenient; they may signal unlawful behavior.

Common examples include:

• Repeatedly requesting documents that have already been provided is often used to delay a decision or frustrate the policyholder into giving up.
• Offering settlements significantly lower than documented damages, even after submitting repair estimates, medical bills, or expert evaluations.
• Quoting parts of the policy out of context, ignoring endorsements or riders that expand coverage, or claiming exclusions that don’t apply to your situation.

How to Document and Strengthen Your Bad Faith Insurance Claim

Keep a Timeline and All Communications

From the moment you suspect something is off with your claim, it’s crucial to begin documenting everything. Create a detailed timeline of all interactions with your insurance company, including dates and times of phone calls, the names and roles of representatives you speak with, and a summary of what was discussed. Save all written correspondence—emails, letters, text messages—and note any changes in the insurer’s explanation for delays or denials. A thorough communication log can become robust evidence supporting your version of events.

Preserve Evidence of Damages and Responses

Bad faith claims are often built on the strength of the original insurance claim itself. That’s why gathering and preserving evidence from the start is essential. Keep copies of:

• Photographs and videos of the damage or injury.
• Contractor or medical estimates and reports.
• Receipts and invoices for out-of-pocket expenses.
• Policy documents and benefit summaries.
• Any communications where the insurer contradicts itself or misrepresents coverage.

Also, keep a record of how the delay or denial affected your daily life—such as being forced to live elsewhere, taking unpaid time off work, or going without necessary medical treatment.

What Not to Do—Mistakes That Can Weaken Your Case

Equally important is avoiding common missteps that can hurt your ability to pursue a bad-faith claim. Do not:

• Verbally accept settlement offers without fully understanding your rights.
• Sign release forms or waivers until your legal team has reviewed them.
• Miss policy deadlines for submitting documentation or appeal letters.
• Destroy or misplace records related to your claim.

Insurers may use anything you say or fail to do to justify limiting liability. The more complete and organized your documentation, the harder it is for them to manipulate the process.

How a Colorado Springs Insurance Bad Faith Lawyer Can Help

Investigating and Building Your Case

We begin every case with a deep dive into the facts and documents that reveal where your insurance provider went wrong. Our team collects and reviews:

• Completed and amended claim forms.
• Policy language, including fine-print exclusions and riders.
• All correspondence with your insurer—emails, letters, phone logs.
• Supporting documentation like medical records, contractor estimates, receipts, and third-party assessments.

We go beyond surface-level reviews. We examine the timeline of events, compare your insurer’s actions against legal obligations, and assess whether they deviated from standard practices. We bring in expert witnesses to evaluate damage assessments or provide insight into claim handling procedures if needed.

Challenging the Insurance Company’s Actions

Once we have a strong evidentiary base, we challenge the insurer’s behavior using every legal tool. This includes:

• Subpoenaing internal records and adjuster logs
• Conducting depositions of claim handlers and supervisors
• Using formal discovery to access internal communications and training materials

We focus on uncovering misconduct—whether it’s failure to investigate, distorted claim valuations, or deliberate misrepresentation of coverage. If an insurer violates Colorado statutes or claims handling standards, we present those failures clearly and forcefully.

Negotiating or Going to Trial, You’re Covered Either Way

While many insurance bad faith claims settle before reaching court, we prepare every case for trial from day one. This mindset gives us leverage during negotiations. Insurers know we won’t settle for less than what you’re owed. From crafting a comprehensive demand package to presenting your case before a jury, we manage the full process. Being trial-ready sends a message: we are prepared to fight for full accountability, no matter how far the process goes.

Speak With a Colorado Springs Insurance Bad Faith Lawyer Today

Free Case Review

If your claim was denied, delayed, or underpaid, we offer a free case review to walk you through your options—directly and without pressure. We know how overwhelming insurance disputes can be, especially from personal loss or financial uncertainty. Our team will review your case materials, assess whether your insurer acted in bad faith, and explain your legal path forward.

Don’t Wait, Let’s Protect Your Rights Now

Time matters—and so does who you trust to represent you. At VandenBout Law, we focus exclusively on helping policyholders, not insurance companies. We know the tactics insurers use because we challenge them every day. When you work with us, you get a responsive, thorough, and committed team to see your case through to the end. Contact us today, and let’s take the first step toward holding your insurer accountable.