How Can Law Firms Help With Insurance Bad Faith Claims?

Dealing with insurance companies after a loss is stressful, but when an insurer acts unfairly, that stress only increases. Many policyholders ask how can law firms help with insurance bad faith claims? The answer lies in the attorneys’ role in holding insurers accountable, ensuring claims are treated fairly, and fighting for rightful compensation. At VandenBout Law, we guide clients in Denver through these complex disputes with dedication and persistence.

Understanding Bad Faith Insurance Claims

Colorado insurance companies have a duty of good faith and fair dealing toward their policyholders. When that duty is breached, it may form the basis of a bad-faith claim. According to the Colorado Revised Statutes C.R.S. § 10-3-1113, a jury may be instructed that an insurer violates this duty if it delays or denies benefits without a reasonable justification. 

In such cases, a civil action may be filed to recover damages beyond the original claim. These protections ensure carriers act responsibly and that individuals have remedies when companies place profits above their obligations.

Common Examples of Bad Faith by Insurers

Policyholders often encounter familiar tactics from insurance companies when bad faith conduct is present. Some of the most common include:

• Wrongful denial of a valid claim despite supporting evidence
• Unreasonable delays in processing or paying out benefits
• Offering unreasonably low settlements that do not cover losses
• Failing to adopt fair standards for prompt resolution of claims, such as those involving medical payments, which is addressed in the Colorado Revised Statutes C.R.S. § 10-3-1104

  How can law firms help with insurance bad faith claims? Learn how attorneys hold insurers accountable and protect your rights in Denver.

Policyholders are left with mounting expenses, stress, and uncertainty about their financial future when these practices occur. This is why legal intervention becomes so important.

In many cases, the company’s tactics affect more than just money; they can affect a family’s well-being, peace of mind, and ability to move forward after a loss.

How Law Firms Support Clients in Bad Faith Cases

Attorneys can be the difference between an unresolved dispute and a fair resolution. Law firms assist by reviewing policy language, investigating claim handling practices, gathering evidence, and filing lawsuits when necessary. They serve as advocates who level the playing field against insurers that often have vast resources and legal teams. 

Beyond handling the technical aspects, lawyers also provide peace of mind, keep clients informed, and ensure their voices are heard.

The Benefits of Working With Experienced Insurance Attorneys

Having an attorney handle a bad-faith case brings multiple advantages. Legal teams negotiate directly with carriers to pursue full and fair compensation, build cases through expert testimony, and ensure compliance with Colorado statutes. Clients benefit from representation that focuses on accountability and justice, while relieving them from the stress of battling large companies alone.

Law firms help policyholders in insurance bad faith claims by analyzing the claim under state law, gathering proof of unfair treatment, negotiating with the company, and pursuing litigation to recover the original claim amount and potentially additional damages. They act as a crucial advocate to counter the insurer’s resources, navigate complex legal procedures, and ensure the policyholder receives fair treatment and the compensation they deserve.

Steps a Law Firm Can Take To Strengthen Your Claim

To build a strong case, attorneys typically:

• Review policy documents to determine coverage rights
• Collect evidence of wrongful conduct, such as correspondence or recorded delays
• Work with professionals to assess damages and calculate losses
• File a lawsuit when negotiations fail, seeking both contract damages and possible punitive damages

These actions are designed to close the gap between what insurers want to pay and what clients are truly owed. By carefully documenting every stage of the dispute, attorneys create a compelling record demonstrating how a company acted in bad faith. For many clients, this process also answers a common concern: How Can I Prove That an Insurance Company Acted in Bad Faith? This documentation can also deter insurers from repeating similar tactics, since a clear legal record may establish a precedent for accountability.

“At VandenBout Law, we focus on helping policyholders in New Mexico navigate disputes involving insurance bad faith. Our practice exclusively represents individuals and families—not insurance companies. ”

Lawrence VandenBout

Trial Lawyer

When To Contact a Bad Faith Insurance Lawyer

Policyholders in Denver should seek legal guidance when they suspect unfair treatment in their insurance claim. Early involvement of an attorney can preserve vital evidence, establish timelines, and prevent carriers from gaining an advantage. Waiting too long may allow the company to continue using delay tactics or pressure individuals into accepting inadequate settlements. 

Even a simple consultation can help clarify whether a claim has been mishandled and the options to pursue justice. Taking action early strengthens the legal claim and restores a sense of control during an overwhelming situation.

Protect Your Rights With VandenBout Law

No one should face an insurance company’s misconduct alone. At VandenBout Law, we stand up for policyholders in Denver who carriers have wronged. 

Call us today at (720) 901-2984 to discuss your situation and learn how we can protect your rights.

Lawrence VandenBout

Mr. VandenBout has successfully tried multiple cases, he understands that many times the most efficient and effective resolution to a legal dispute occurs outside the courtroom and through the process of mediation. He has been successful in negotiating many favorable settlements for his clients. Mr. VandenBout also utilizes his experience to counsel and assist clients in developing strategies for minimizing the risk of becoming involved in potential legal disputes in the future.

Years of experience: Over 11 years
Recognition: Rising Star 2021, 2022, 2023 & 2024.
Location: Denver, CO