Insurance policies are designed to provide protection and financial relief during challenging times. Whether it’s a car accident, property damage, or a medical emergency, your insurance company is expected to act in good faith, honoring the terms of your policy and processing claims fairly. However, this is not always the case. There are instances where insurance companies prioritize their profits over their policyholders, engaging in actions that are deemed bad faith practices.
In Colorado, laws protect policyholders against insurance bad faith. When an insurer fails to fulfill its obligations or acts unreasonably, you may have grounds to file a bad faith insurance claim. Understanding the key elements of bad faith and knowing how to prove it is essential for holding insurers accountable and recovering the compensation you deserve.
Before pursuing a claim, it’s crucial to understand the behaviors and practices that qualify as bad faith under Colorado law. Bad faith occurs when an insurance company deliberately or unreasonably fails to meet its obligations, often leaving policyholders in a vulnerable position. Examples of bad faith practices include:
If your insurer engages in any of these practices, it may be acting in bad faith. Recognizing these signs early allows you to take action and protect your rights.
To build a strong case, you need to gather evidence that demonstrates the insurance company’s unreasonable behavior. Documentation is critical for establishing a pattern of bad faith practices and proving your claim. Key evidence includes:
Comprehensive evidence strengthens your case and provides the foundation for demonstrating the insurer’s misconduct.
In Colorado, bad faith claims require more than showing unfavorable treatment; you must demonstrate that the insurer’s actions were unreasonable. This involves comparing their behavior to what would be expected of a reasonable insurance company in a similar situation. Examples include:
Providing examples of how a reasonable insurer would have handled your claim can highlight the discrepancies and support your argument that the actions were unjustified.
To succeed in a bad faith claim, it’s not enough to demonstrate unreasonable behavior—you must also prove that the insurer’s actions caused you harm. This harm can be financial, emotional, or both. Examples of damages include:
Providing evidence of these damages, such as receipts, bank statements, or medical records, strengthens your claim and demonstrates the impact of the insurer’s misconduct.
Insurance bad faith claims are legally complex and require a thorough understanding of Colorado’s insurance laws. Consulting with an experienced attorney can make a significant difference in your case. A skilled legal professional can:
Legal representation ensures that your rights are protected and increases your chances of achieving a favorable outcome.
When an insurer acts in bad faith, policyholders may be entitled to compensation for various types of damages, including:
These damages aim to address the harm caused by the insurer’s actions and hold them accountable for their behavior.
If you believe your insurance company is acting in bad faith, it’s important to act quickly. Here are key steps to take:
Taking these steps ensures that you have a solid foundation for pursuing a bad faith claim and protecting your rights as a policyholder.
Insurance companies have a duty to act in good faith, but when they fail to do so, policyholders have the right to hold them accountable. By understanding what constitutes bad faith, gathering evidence, and seeking legal support, you can build a strong case and recover the compensation you deserve.
If you suspect your insurance company is acting in bad faith, contact us today for a consultation. At Pribila & Fields, we are committed to helping Colorado Springs policyholders fight against unfair practices and achieve justice.
Pribila and Fields, P.C. has successfully handled thousands of personal injury cases and tried scores of cases where an insurance carrier refused to pay fair compensation for injuries, losses or damages.
18 E. Monument Street
Colorado Springs, CO 80903
reception@pribila.com
Phone: (719) 888-3720
Fax: (719) 473-2542