An insurance bad faith attorney can help when an insurer delays, denies, or mishandles a claim in a way that may violate Colorado law. C.R.S. 10-3-1115 prohibits an insurer from unreasonably delaying or denying payment of a covered benefit owed to a first-party claimant, and C.R.S. 10-3-1116 sets out what a policyholder may recover when that happens. Born & McCaffrey Injury Law helps Colorado policyholders evaluate whether an insurer’s conduct may support a bad faith claim and what evidence may be needed to move forward.
Colorado law provides a statutory remedy that may allow recovery of two times the covered benefit amount, along with reasonable attorney fees and costs, when an insurer’s delay or denial is found unreasonable. The value of a claim depends on the policy language, the facts surrounding the denial, the available evidence, and the losses connected to the dispute.
If you are searching for a Denver insurance bad faith lawyer after a denied or delayed claim, our attorneys can review how your insurer handled the matter and discuss whether Colorado’s bad faith laws may apply. Call (303) 800-6996 for a free case review.
Born & McCaffrey Injury Law Handles Complex Insurance Disputes
Insurance disputes require careful review of policy language, claim records, and the decisions made throughout the insurance process. Bad faith work often overlaps with the underlying injury claim, and you can see all the injury matters we handle across our practice. At Born & McCaffrey Injury Law, you work directly with us instead of being passed between case managers or unfamiliar representatives.
Michael Born, Colorado Bar No. 38464, has spent his entire legal career representing injured people, in jurisdictions across Colorado and beyond. Peter McCaffrey, Colorado Bar No. 46740, brings a trial-focused approach to serious injury and insurance disputes.
Bad faith cases depend on building a clear record of what the insurer knew, what information it considered, and why it made certain decisions. Because we handle those records ourselves, we can examine what the insurer did and build a strategy around the specifics of your claim.
We also serve Colorado’s Spanish-speaking community. Peter McCaffrey speaks fluent Spanish, taught English in Spain for several years, and hosts a weekly Spanish-language radio show. Lea esta página en español.
If you need an insurance bad faith attorney to review how your claim was handled, contact us today for a case review.
What Is Insurance Bad Faith Under Colorado Law?
Insurance bad faith occurs when an insurer unreasonably delays or denies benefits that should have been paid under an insurance policy. Colorado uses the word unreasonable rather than irrational, and the difference matters because a policyholder does not have to show the insurer acted irrationally. Colorado recognizes both statutory and common law claims, and which one applies depends on the circumstances of the dispute.
Colorado law prohibits insurers from unreasonably delaying or denying payment of covered benefits. A successful statutory claim may allow a policyholder to recover two times the covered benefit amount, along with reasonable attorney fees and court costs.
Common law bad faith claims involve a different legal standard and require proof of additional elements. While statutory claims focus on whether the insurer acted unreasonably, common law claims examine whether the insurer acted unreasonably and with knowledge or reckless disregard of that conduct.
The distinction matters because the type of claim affects what evidence may be relevant. Insurance records, claim communications, policy language, medical documentation, accident reports, and other supporting materials may all play a role in evaluating whether an insurer handled a claim properly.
A policyholder may wonder whether a denied claim is simply a disagreement with the insurance company or something more serious. A review of the insurer’s reasoning, investigation process, and communications can help determine whether the dispute involves ordinary claim handling or potential bad faith.
Reach out to us to discuss your claim and learn whether speaking with a Denver insurance bad faith lawyer makes sense for your situation.
First-Party vs. Third-Party Bad Faith Claims
The distinction between first-party and third-party bad faith depends on which policyholder the insurer owed a duty to. A first-party claim belongs to you against your own insurer. A third-party claim belongs to a policyholder whose own liability insurer mishandled a claim that someone else brought against them.
First-party bad faith Colorado claims generally involve situations where a policyholder seeks benefits directly from their own insurance company. Common examples include disputes involving uninsured motorist coverage, underinsured motorist coverage, and other policy benefits where the insured person is seeking payment under their own policy.
These disputes can arise after a serious accident when another driver does not have enough insurance coverage to address the full extent of the injuries. In those situations, the injured person may turn to their own UM/UIM coverage and expect the insurer to evaluate the claim fairly.
Third-party bad faith is the claim of a policyholder whose liability insurer failed to evaluate a claim properly or failed to take reasonable steps to settle within the available policy limits. Colorado does not allow an injured person to sue the at-fault party’s insurer directly for bad faith, because the insurer’s duty of good faith runs to its own policyholder. C.R.S. 10-3-1115 draws the same line, excluding a person asserting a claim against an insured under a liability policy from the definition of first-party claimant.
The legal analysis can differ significantly between first-party and third-party disputes. Understanding which category applies helps determine what evidence is needed and what legal options may be available.
Many insurance disputes begin with an underlying accident claim. In Colorado, bad-faith disputes often follow a denied auto-accident claim when an injured person believes an insurer failed to properly evaluate available coverage or the losses connected to the accident.
For help evaluating whether your situation involves a Colorado bad faith insurance claim, we can review the policy information and the circumstances surrounding your dispute.
What Insurance Company Tactics May Lead to a Bad Faith Claim?
Insurance companies must evaluate claims fairly, investigate available information, and provide reasonable explanations when they deny or delay covered benefits. A denied insurance claim attorney can help review whether an insurer’s actions were part of ordinary claim handling or whether the conduct may support a bad faith claim under Colorado law.
Not every claim dispute amounts to bad faith. Insurance companies may disagree with the value of a claim, request additional documentation, or investigate whether coverage applies. The issue is whether the insurer’s actions were reasonable based on the information available at the time.
Some conduct that may raise concerns includes:
- Unreasonable delays in evaluating a claim: An insurer may create concerns when it repeatedly postpones decisions without a clear reason, especially when the requested information has already been provided. A pattern of unexplained delays may become important evidence when reviewing how the claim was handled.
- Insufficient investigation of available evidence: Insurance companies have a responsibility to consider relevant information before making coverage decisions. Ignoring medical records, accident reports, witness statements, or other important evidence may affect whether the claim was properly evaluated.
- Unclear or unsupported claim denials: A denial should explain the reason coverage was refused and identify the policy provisions supporting that decision. A denial that does not match the facts or the language of the policy may require further review.
- Settlement offers that do not reflect documented losses: An insurer may dispute the value of a claim, but a pattern of undervaluing damages without a reasonable basis can become part of a bad-faith analysis.
Insurance disputes are usually decided by looking at the complete record rather than one isolated conversation or letter. Claim files, internal communications, policy language, and the insurer’s investigation process can provide important information about how the decision was made.
If an insurer has denied or delayed your claim, schedule a review of the available evidence with our team. We can look at the claim file, the denial language, and the timeline to determine whether the handling of the claim raises concerns under Colorado law.
Why Are UM/UIM Claims Common Sources of Colorado Bad Faith Disputes?
UM/UIM disputes are common sources of insurance bad faith claims because they involve an injured person seeking benefits from their own insurer after another driver’s coverage is unavailable or insufficient. These claims can become complicated when the insurer disputes the value of the injuries, the available coverage, or the amount that should be paid.
Uninsured motorist (UM) coverage applies when the responsible driver does not have insurance. Underinsured motorist (UIM) coverage applies when the responsible driver has insurance, but the policy limits are not adequate to cover the injured person’s losses.
A common scenario involves a serious crash where the at-fault driver’s policy pays its maximum limit, but the injured person still faces significant medical expenses, lost income, or other damages. The injured person then turns to their own UM/UIM coverage for additional protection.
Disputes may arise when an insurer:
- Questions the severity of the injuries
- Challenges whether the treatment was related to the accident
- Disputes the value of future damages
- Delays in making a decision about available benefits
Colorado drivers purchase insurance coverage with the expectation that their policy will provide protection when they need it. When a UM/UIM claim is disputed, reviewing the policy language and the insurer’s handling of the claim can help determine whether the response was reasonable.
For individuals dealing with an unresolved UM/UIM dispute, a Colorado bad faith insurance claim may involve more than the amount of money offered. It may also involve whether the insurer properly investigated the claim and followed its obligations under Colorado law.
If your own insurer is disputing a UM/UIM claim, call us at (303) 800-6996 and we will review how the claim was evaluated.
What Should I Do After My Insurance Claim Is Denied?
After receiving a claim denial, start by obtaining the denial explanation in writing and preserving all communication with the insurance company. The reason given for the denial, the documents reviewed, and the timeline of the insurer’s decisions may all become important when evaluating a potential bad faith claim.
A denied claim does not automatically mean an insurer acted improperly. The focus is whether the insurance company followed the requirements that apply to claim handling and whether its decision was reasonable based on the information available.
Consider taking these steps after a denial:
- Save all insurance documents. Keep policy documents, denial letters, emails, text messages, and other communications related to the claim. These records may help show how the insurer handled the matter over time.
- Avoid signing a final release before understanding the terms. Some insurance agreements may affect your ability to pursue additional benefits later. Reviewing the language before signing can help clarify what rights may be affected.
- Collect supporting evidence. Medical records, repair estimates, income documentation, photographs, and accident reports can help show the value of the claim and the losses connected to the dispute.
- Review the insurer’s explanation. Understanding why the claim was denied or delayed is an important part of determining whether the insurer’s actions may violate Colorado requirements.
Colorado law sets deadlines for filing, called statutes of limitation, and missing one can end a claim before a court ever hears it. Colorado courts have generally applied a two-year deadline to bad faith insurance claims, measured from the point the policyholder knew or reasonably should have known about the unreasonable delay or denial. Because a related injury claim can run on a different clock, confirm your own deadline with an attorney rather than assuming.
If an insurer delays a claim over a long period, prompt legal review is critical. Contact us at Born & McCaffrey Injury Law to review the circumstances and discuss whether a denied insurance claim attorney may be able to assist.
FAQs: Denver Insurance Bad Faith Attorneys
The answers below address common concerns for Colorado policyholders considering a potential bad-faith claim.
How is a bad faith claim different from just disagreeing with my insurer’s decision?
A simple disagreement over how much a claim is worth isn’t automatically bad faith. Bad faith requires showing the insurer’s delay or denial was unreasonable given the facts it had, which usually means documenting a pattern of unclear denials, unreasonable delay, or a settlement offer far below what the evidence supports.
What does unreasonable delay look like in practice?
There is no fixed number of days that defines unreasonable delay. Under Colorado law, a delay becomes unreasonable when the insurer had no reasonable basis for it. Continuing an investigation long after the relevant facts are settled, or repeatedly requesting information already provided, are the patterns that tend to draw scrutiny.
How long does an insurance bad faith claim take?
The timeline depends on factors such as the nature of the claim, the amount of evidence involved, and whether the parties resolve the dispute through negotiation or litigation. Claims involving extensive insurance records may require additional review before reaching a resolution.
Can I still pursue a Denver bad faith claim if I already accepted a partial payment?
Accepting a partial payment doesn’t automatically waive your right to pursue the remaining amount, especially if the insurer never fully explained why it withheld the rest. An attorney can review the language of what you signed and the surrounding circumstances to determine what options remain open.
Does Colorado’s bad faith statute apply to the other driver’s insurance company?
No. C.R.S. 10-3-1115 protects first-party claimants, meaning people seeking benefits under their own policy, and it specifically excludes someone asserting a claim against an insured under a liability policy. If the other driver’s insurer is handling your claim unfairly, the path usually runs through the underlying injury claim or your own UM/UIM coverage instead.
Discuss Your Insurance Dispute With Born & McCaffrey Injury Law
A denied or delayed insurance claim can create uncertainty about whether coverage will be available when you need it most. At Born & McCaffrey Injury Law, we review the details of the dispute and the reasons the insurer gave for its decision.
If you are looking for a Denver insurance bad faith lawyer, contact us at (303) 800-6996 to get started. We can discuss your situation, explain the factors that may affect your case, and help you understand the options available.
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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