What Is a Bad Faith Insurance Claim?
A bad faith insurance claim is a legal action you can take when your insurer fails to uphold their contractual obligations in a dishonest or unfair way. Insurance companies are legally and ethically responsible for acting in good faith when handling your claim. You may be entitled to additional damages on top of your original claim when they don’t.
How Insurance Companies Are Supposed to Act
Under Colorado law, insurance providers must treat claimants fairly, communicate promptly, and pay valid claims without delay. According to Legal Clarity, insurers must evaluate each claim objectively and fulfill their policy obligations based on the case’s merits. They expose themselves to legal consequences when they deviate from this duty.
When an Insurer Crosses the Line
When an insurer acts unreasonably, dishonestly, or delays payment without justification, it may be considered bad faith. While insurance companies are allowed to investigate and deny claims when justified, they cannot manipulate facts, ignore evidence, or stonewall the process.
Signs You May Have a Valid Bad Faith Insurance Claim
Spotting bad faith behavior isn’t always easy, especially when the insurer’s responses are vague or confusing. However, some red flags are common.
Unreasonable Delays or Denials
If your insurer takes weeks or months to respond—or denies your claim without proper explanation—it may indicate bad faith. Delaying payment or decision-making beyond reasonable timeframes violates Colorado’s unfair claims practices statutes. According to Money Mentor, these tactics are common indicators of dishonest behavior.
Misrepresentation of Policy Terms
If an adjuster misquotes your policy, claims you aren’t covered for something that clearly is, or provides misleading information about your rights, that’s a major warning sign. Misrepresenting the terms of your policy may give rise to a bad-faith action.
Lack of Proper Investigation
Every valid claim deserves a proper investigation. If your insurer fails to conduct interviews, inspect the damage, or review your evidence in good faith, that negligence could support a claim. Skipping or rushing investigations to justify a denial is not just unethical—it’s illegal.
Do I Have Grounds to Sue for Bad Faith?
Bringing a bad faith claim requires more than just frustration—it requires evidence, and your case must meet certain legal standards.
Legal Criteria You Must Meet
To succeed in Colorado, you’ll need to show that:
- You had a valid insurance policy
- You submitted a legitimate claim
- The insurer unreasonably delayed or denied the claim without a valid basis
- You suffered damages as a result
Colorado Revised Statutes C.R.S. §10-3-1115 and §10-3-1116 govern these claims and allow penalties and attorney fees when the insurance company is found liable.
Evidence That Can Support Your Case
Documents matter. Save every communication, claim form, denial letter, and timeline of events. Screenshots of emails, text messages, and phone records can also help. Photos of damage and expert opinions (like repair estimates) add weight to your claim.
Let VandenBout Law Help You Take Action
When you’re facing delays or unfair treatment by your insurer in Colorado Springs, you don’t have to handle it alone. VandenBout Law brings decades of litigation experience and a personalized approach to every bad-faith insurance case we handle.
Talk to a Bad Faith Insurance Lawyer Today
If you believe your insurance company has acted in bad faith, don’t wait. Strict timelines apply, and the earlier you act, the better your chance of recovering full compensation. Our legal team is ready to evaluate your case, explain your rights, and pursue justice.
Free Consultation – No Win, No Fee
We offer free consultations and operate on a contingency fee basis, which means you don’t pay unless we win your case. Call us today to speak directly with a bad-faith insurance attorney in Colorado Springs. Let’s make sure your insurer plays fair.
