Improper Denial of Insurance Claims

An insurance policy is a contract between the insurance company and the insured. Both parties are bound to the terms of the contract and must act in good faith. If a legitimate claim is filed but denied by the insurance company, then the insurance company has violated the terms of the contract and acted in bad faith.

If this happens, then the insurance policyholder can file a legal claim, often called an “insurance bad faith lawsuit,” against the insurance company for money damages. In Colorado, when an insurance company has breached its obligation to act in good faith, compensatory damages for economic and non-economic losses are available to make you, the policy holder, whole. Also, punitive damages are available in certain cases to punish the insurance company and to deter wrongful conduct by other insurance companies.

Economic compensatory damages may include, among other things: 1) a judgement within the policy limits; 2) a judgement in excess of the policy limits; and 3) attorney’s fees and costs.

Non-economic compensatory damages recoverable for the insurance company’s bad faith breach of the insurance contract include emotional distress, pain and suffering, inconvenience, fear and anxiety, and impairment of the quality of life.

When To Consult an Attorney About Insurance Bad Faith?

There are several stages of the insurance claim process at which you should consider consulting an attorney:

• The insurance adjuster informs you that the loss will not be covered under your policy

• After a series of communications between you and your insurance company, the insurance company still refuses to pay, or offers a payment amount that is significantly lower than the value of the damage.

No matter where you are in the insurance claim process, this law firm can step in and take over negotiations. In addition to using legal knowledge to interpret your insurance policy, we work with a variety of experts to build a strong argument on your behalf. Depending on the case, we may call in weather experts, insurance policy language experts, damage assessment experts, professional business valuators, land surveyors, or fire cause and origin experts.

“Don’t allow yourself to be victimized by an insurance company or their often biased insurance adjusters!”

Contact Our Office Today

This law firm’s insurance company bad faith practice focuses exclusively on losses involving businesses as well as residential homes. A common example would be where an insurance company refuses to pay a claim made for fire damage to either a business, home or other real estate. In some cases, the insurance company may even accuse you of committing arson. If you are involved in a dispute with your insurance company over a claim you have already submitted, or if you have suffered a loss that you believe will be difficult to prove, you are invited to contact this law firm to schedule a confidential appointment with a lawyer.