Insurance Bad Faith Claims
Proving that an insurance company is acting in bad faith can be challenging, so the lawyer you work with should have extensive experience litigating cases against insurance companies. Our firm has spent years standing up for the rights of Denver citizens harmed by unscrupulous insurance practices, and we may be able to help you pursue a claim against your insurer as well.
If your case against your insurance company is successful, you may receive compensation that exceeds the value of your original claim.
Why Choose Us?
Your Advocate Against Unethical Insurers
Insurance companies have vast financial and legal resources. Consequently, going up against them is no small feat. Not just any attorney will do — you need a team of lawyers with a proven track record of successfully taking on major insurance corporations.
Here are a few reasons you should consider hiring Born & McCaffrey to handle your case:
- As a firm focused on personal injury cases, we deal with insurance companies daily.
- Our team possesses in-depth knowledge of Colorado’s insurance laws.
- We’re committed to giving our clients the personalized attention they deserve.
- We have a track record of securing significant compensation for our clients.
- Our lawyers are skilled negotiators, but they won’t hesitate to go to trial if needed.
- You’ll pay nothing unless and until we obtain fair compensation for you.
To learn more about how Born & McCaffrey can take the lead on your bad-faith insurance case, schedule a free, no-obligation consultation and case review today.
What Is “Bad Faith” in Insurance?
In terms of insurance, a company acts in bad faith when it deliberately and unfairly avoids its contractual duties in any way. Bad-faith actions can take many forms, some of which are more obvious than others. Bad-faith practices within the insurance industry include:
- Delaying claims unreasonably
- Rejecting claims without giving a clear reason
- Underpaying claims that the company is contractually obligated to cover
- Deliberately misconstruing policy terms to deny claims.
Insurance companies that employ bad-faith tactics do so for one reason: profit. Denying and underpaying claims allow insurers to keep more money in their coffers. Delaying claims does, too — the longer the company can hold onto its money, the more interest it generates.
Common Examples of Bad-Faith Insurance Practices
Policyholders can’t always recognize bad-faith insurance practices when they see them. However, the better equipped you are to identify unethical practices, the sooner you can reach out for legal help, and the better your chances of a successful outcome will be.
Here are some examples of what bad-faith insurance practices can look like:
Unclear Denials
Insurance companies aren’t obligated to pay out every claim they receive. If your insurer determines that your policy doesn’t cover your claim, it must send a denial letter. When an unscrupulous insurance company seeks to deny a claim it knows it should cover, it may send a denial letter that includes unclear or convoluted language.
This tactic works more often than you might think. To the average person, the language used in insurance policies is already confusing, so receiving an unintelligible denial letter might not seem out of the ordinary.
If you receive a denial letter with unclear language, your first step should be to follow up with your insurer to clarify their reasoning. If the company insists on denying a covered loss, it may be time to reach out to a bad-faith insurance lawyer.
Underpaying Claims
Some insurance companies hope that policyholders will be so relieved to get any compensation at all that they won’t question an underpaid claim.
For example, imagine that you have full-coverage auto insurance, and your vehicle is completely destroyed in a car accident. The vehicle’s assessed value is $10,000, but the insurer offers you only $5,000.
In cases like these, providing proof of your car’s pre-crash value may convince the insurance company to fulfill its obligations. However, if it continues to offer far less than your claim is worth, you should speak with an attorney.
Having trouble getting your insurer to pay out on a legitimate claim? Call Born & McCaffrey at (303) 800-6996 to schedule a free consultation with a qualified attorney.
Delaying Claims
When you file a claim, your insurer needs time to investigate the circumstances. This means that the company may need more information from you. Colorado law requires insurance companies to send a written explanation of the necessary information. However, if the insurer sends repeated requests for additional documentation, it may be a sign that it’s trying to stall.
Sometimes, an unethical insurance company may continue stringing a client along in hopes that they’ll eventually give up. A Denver bad-faith insurance attorney may be able to convince the insurer to pay up. If they don’t, your lawyer can pursue a formal lawsuit on your behalf.
Not Conducting a Thorough Investigation
Your insurer is responsible for investigating claims. However, some car insurance companies refuse to investigate accidents promptly, and more often than not, this leads to denied or unpaid claims. If your insurer fails to look into the event that prompted the claim, it’s acting in bad faith.
What Actions Can You Take Against Your Insurer?
Every bad-faith insurance case is different. Depending on your situation, one or more of the following actions might be appropriate:
Common Law Bad-Faith Lawsuit
A common law bad-faith lawsuit is what most people think of when they imagine a bad-faith insurance lawsuit. With this lawsuit, you may be able to recover damages like:
- The amount of the unpaid claim
- Other economic losses you suffered because of the unpaid claim
- Compensation for emotional distress and other non-monetary losses
- Legal fees.
To win a common law bad-faith lawsuit, your lawyer must show that the insurance company’s actions were reckless and unreasonable. Winning this type of lawsuit is generally more challenging than winning a statutory bad-faith lawsuit, but the damages you stand to recover are usually greater.
Statutory Bad-Faith Lawsuit
In Colorado, you have the right to file what’s known as a statutory bad-faith lawsuit. This is an action you may be able to file in addition to (not instead of) a common law bad-faith lawsuit. If you’re successful, you may recover the following damages:
- Twice the value of the claim that was delayed or denied
- Reasonable attorney fees and court costs.
For your statutory bad-faith claim to succeed, you must demonstrate that your insurer’s delay or denial of your claim was unreasonable. However, you don’t need to prove that the insurer’s actions were reckless or knowing.
Breach of Contract Lawsuit
A lawsuit for breach of contract is another way to potentially recover compensation. Your insurance policy is a contract between you and your insurance provider; a breach of contract lawsuit can hold the company accountable for violating that agreement.
FAQ About Bad-Faith Insurance Practices
Insurance law can be complicated. As such, many of our clients come to us with questions. Here are the answers to some of the ones we hear most often:
Technically, yes. However, these claims can be difficult to prove, and insurance companies have teams of experienced lawyers on their side. It’s therefore wise to work with an attorney rather than pursue a case yourself.
Without knowing the specific details of your case, this question is impossible to answer. We can give you a better idea of the strength of your case during your free initial consultation.
Yes. Even if you’ve switched insurance companies since the incident from which the claim arose, you can sue your former insurer for bad faith as long as that policy was in effect at the time of the incident.
First, contact your insurer to find out the reason for the delay and document all communication with them. Then, contact a bad-faith insurance lawyer for tailored advice.
If you have other questions, don’t hesitate to reach out to our team for individualized guidance.
Don’t Face Unethical Insurance Companies Alone
Born & McCaffrey Is Ready to Fight for You
Insurance companies that resort to bad-faith tactics do so because they think they can get away with it. The unfortunate truth is that they often do. Many consumers don’t realize they have legal recourse or think the process of filing a bad-faith insurance lawsuit would be too complex.
When you work with Born & McCaffrey, you don’t have to worry about the logistics of your case. As soon as you hire us, our capable Denver insurance bad-faith attorneys will get to work building a strong case on your behalf, and we’ll be here to support you each step of the way.
If your insurance company is refusing to fulfill its contractual obligations, you have options. Contact us at (303) 800-6996 or send us a message online today to book your complimentary consultation.
ATTORNEY MICHAEL BORN
Michael has represented well over a thousand injury victims in his career. He has litigated 500 court cases. He has tried cases in counties all over Colorado. He has briefed and argued appeals in the appellate courts. This experience ultimately led to him leaving the big firm life to form Born & McCaffrey in order to provide a more client centered and personal representation than a large law firm is able to provide. [ ATTORNEY BIO ]
Born and Mccaffrey did a spectacular job handling my case. I was completely unequipped to handle anything of this sort on my own and Michael did an amazing job at communicating to me what exactly was happening during each step of the process while making sure I was well prepared. I feel so much better having this all behind me and can’t thank the firm enough for their countless hours of work and negotiation on my behalf. — A. Hernandez
I recently had the opportunity to work with my attorney on a car accident case, and I am incredibly impressed with the outcome. Overall, I would highly recommend my attorney Peter to anyone in need of legal assistance for a car accident. Their professionalism, dedication, and knowledge made a challenging situation much more manageable, and I am grateful for their hard work and commitment to my case. — V. Cano
Mr. Born has been great with my case from the first phone call! Very knowledgeable and prompt when returning calls with answers to my questions. I never felt like I was just another case; he provided individualized care and gave me the information I needed to know the next steps to assure the best result for my injuries! — J. Cruz
I had an accident about almost a year ago and the fault insurance didn’t want to pay the entire bill. It’s been amazing working with them I really didn’t have to worry about a thing. Got everything settled and didn’t have to pay anything out of my pocket. Thank you very much to these gentleman!! — A. Gomez
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