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Insurance Bad Faith

Colorado Insurance Lawyers in Colorado Springs

Fight Bad Faith From Your Insurance Provider With Gaddis, Herd, Craw & Adams, P.C.

Colorado drivers should carry uninsured and underinsured motorist coverage to protect against drivers with little or no insurance. This coverage is relatively inexpensive and can prevent serious financial hardship. When an insurer fails to pay for covered personal injuries, it may be acting in bad faith. Policyholders often face mounting medical bills, lost income, and delayed responses as insurers dispute injuries, request excessive documentation, or stall payment, leaving individuals to cover costs they shouldn’t bear. An insurance bad-faith lawyer in Colorado Springs can help determine whether these delays or denials violate the insurer’s obligations.

Colorado law requires insurers to promptly investigate claims, communicate clearly, and either pay benefits or provide valid reasons for denial. Claims in Colorado Springs and El Paso County may involve complex issues like policy limits and overlapping coverage, making careful review essential. If an insurer withholds payment, it violates the purpose of the policy—you paid premiums for protection, and the company is obligated to honor that contract.

If your insurance company is delaying or denying a valid claim, it may be time to take action and protect your rights. Contact Gaddis, Herd, Craw & Adams, P.C. to discuss your situation and find out how an experienced Colorado Springs bad faith insurance lawyer can help you pursue the compensation you deserve.

What Is Bad Faith Insurance?

  • An insurance company acts in bad faith when it refuses to pay a valid claim or fails to investigate it promptly.
  • It may also be bad faith if the insurer does not clearly disclose policy limits or exclusions before purchase.
  • Not every delay is bad faith, but a pattern of prioritizing the insurer’s interests over yours may justify additional legal claims.
  • Bad faith issues can arise in auto, homeowners, renters, disability, and life insurance policies.
  • If you suspect bad faith, you can file a complaint with the insurer or consult a bad faith insurance attorney Colorado Springs residents rely on to evaluate your case and protect your rights.

In Colorado, bad faith can include:

  • Denying a claim without proper investigation
  • Offering settlements far below the value of losses
  • Ignoring supporting evidence
  • Causing unnecessary delays or repeatedly requesting the same documents

Types Of Bad Faith Insurance Issues We Commonly See

People in Colorado Springs come to us with a range of issues involving their insurers, and it’s not always clear whether it’s a simple dispute or bad faith. We evaluate how the company handled communication, investigation, and payment decisions to determine if a separate bad faith claim exists.

  • Auto insurers disputing fault or cutting off benefits after initially accepting a claim
  • Underinsured motorist claims where coverage is insufficient, but payment is delayed or denied
  • Homeowners' claims involving hail or wind damage with partial or inadequate payouts
  • Unexplained delays, inconsistent decisions, or repeated changes in claim positions
  • Requests for excessive or duplicate documentation that slow down the process

These cases often require careful review of timelines, communications, and claim records. If your insurer has made partial payments, reversed decisions, or failed to justify its actions, a bad faith lawyer Colorado Springs policyholders trust can help assess your situation and identify next steps.

 

What To Do If You Suspect Insurance Bad Faith

It’s not always clear when to stop negotiating with an insurer and start seeking legal help—especially if it’s your first major claim. If something feels off, begin by organizing your claim file. A clear record of calls, emails, letters, and payments helps you spot patterns and explain your situation to an advisor or attorney.

Here are a few practical steps to protect yourself:

  • Keep everything: Save all correspondence, including denial letters, benefit explanations, and notes from phone calls.
  • Request key documents: Ask for your full policy, any recorded statements, and written reasons for delays or denials.
  • Follow medical advice: Continue recommended treatment and attend appointments so your records accurately reflect your condition.
  • Be cautious: Don’t assume what the insurer can or can’t do, and avoid signing broad releases or settlements without fully understanding them.

If your claim may lead to a dispute, early legal guidance can help you understand your options, timelines, and risks—so you can decide whether to settle or move forward with a claim.

Frequently Asked Questions About Insurance Bad Faith in Colorado

What is insurance bad faith in Colorado?

Insurance bad faith occurs when an insurer unreasonably delays, denies, or underpays a valid claim without a legitimate basis. This can include failing to investigate properly, misrepresenting policy terms, or not communicating promptly.

How can I tell if my claim is being unfairly delayed?

Unexplained delays, repeated requests for the same documents, lack of communication, or shifting reasons for denial may indicate your insurer is not handling your claim fairly.

What damages can I recover in a bad faith claim?

In addition to the value of your original claim, you may be able to recover extra damages such as interest, attorney’s fees, and in some cases, penalties or compensation for financial and emotional harm.

Do I need a lawyer to handle an insurance dispute?

While not always required, having a lawyer can help you understand your rights, negotiate with the insurer, and pursue legal action if necessary—especially in complex or high-value claims.

How long do I have to file a bad faith claim in Colorado?

Colorado law sets time limits (statutes of limitations) for filing insurance-related claims. The exact timeframe depends on the specifics of your case, so it’s important to seek legal advice promptly.

What should I do before accepting a settlement offer?

Carefully review the terms, understand what rights you may be giving up, and consider consulting with an attorney before signing anything. Accepting a settlement may prevent you from pursuing additional compensation later.

We Can Protect Your Rights

At Gaddis, Herd, Craw & Adams, P.C., our bad faith insurance lawyers have more than 35 years of experience handling claims against insurance companies. We work with medical records, repair estimates, legal opinions, and witness statements to fully document your losses and present a clear, well-supported claim. Our familiarity with how insurers evaluate risk helps us push for fair resolutions during negotiations.

If an insurer still refuses to act reasonably, we are prepared to take your case to court in El Paso County and the surrounding areas. Litigation may involve strict deadlines, discovery, and depositions, and we guide you through each step. Showing we are ready for trial can also pressure insurers to take your claim seriously, and a bad-faith lawyer Colorado Springs residents rely on can help you pursue the compensation you are owed.

When your insurer fails to uphold its obligations, you deserve strong legal support on your side. Speak with a Colorado Springs bad faith insurance lawyer today to protect your claim and hold the company accountable.

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