Addressing Bad Faith Litigation in Colorado

 Posted on February 21,2024 in Personal Injury

When you maintain auto liability insurance required by Colorado law, you expect the insurance company to abide by the contract and provide coverage for valid accident claims. But what happens when an insurance company unreasonably denies or delays a valid claim? They could be acting in bad faith. An attorney can help you assert your rights as the contract holder and avoid any further harm by your insurer.

What is Bad Faith Litigation?

When an insurance company wrongly denies or delays a claim or deviates from acceptable claim handling standards when considering a valid claim, that can be considered bad faith. Colorado statutes, case law, and Division of Insurance regulations set forth the standards by which an insurance company must comply with or be liable for bad faith claims.

Common Bad Faith Tactics

Insurance companies acting in bad faith may employ the following tactics to avoid taking action on reasonable claims:

• Insurers cause delays by asking for duplicate information, conducting overbroad investigations, taking too long to investigate or pay claims, filing multiple motions or continuances to prolong legal proceedings

• Lowballing claims

• Denying valid claims without conducting a reasonable investigation

• Failing to promptly and thoroughly communicate with their insureds about the claim

• Misrepresenting or ignoring contract terms

What Can You Do About Bad Faith Conduct?

What you can do about bad faith conduct rests on which tactic the insurance company has chosen to use. Types of bad faith claims can include:

• Breach of contract

• Common law bad faith

• Statutory bad faith

To understand which bad faith type you are dealing with and to gather the appropriate evidence for your claim, you should:

• Maintain or request a copy of your insurance policy and review applicable portions

• Maintain a  log of all conversations with your insurance company which includes any emails, texts, and phone calls

• Get a written explanation for any denial, including all the factual and legal bases for the denial

• Insist on prompt communication from the insurer

• Get yourself a bad faith litigation attorney to advise you if bad faith has occurred and what can be done about it, including whether litigation is necessary and appropriate for your situation

It may be wise to seek legal advice or retain an attorney as soon as you are injured in an auto accident or see questionable conduct by an insurer at any point. There is no substitute for an experienced and reputable bad-faith litigation attorney if you find yourself in a disagreement with your insurer. Having such a lawyer sooner rather than later can help avoid mistakes you are not aware of and possibly irreparably prejudice your ability to seek justice. 

Contact a Larimer County, CO Bad Faith Insurance Attorney

Most insurance companies will act in good faith and adhere to the contract, even so far as going the extra mile for policyholders. Yet, sometimes an insurer chooses to act in bad faith, at which point it is a good idea to seek out an experienced Fort Collins, CO, bad faith insurance lawyer to help handle the issue. The Hoggatt Law Office, P.C. offers free consultations to discuss your legal issues and, if need be, file claims on your behalf. Contact our firm today at 970-225-2190 to set up an appointment.