You make payment to an insurance company for your peace of mind. You anticipate compensation from your insurer for any losses covered by your policy if someone is injured in an accident. When insurers decline to make payment on your claim for no reason or fail to sufficiently protect and defend you from third-party claims, they act in bad faith. The following is an exploration of insurance bad faith and how to fight your insurer on it.
Insurance Bad Faith
Insurance bad faith is a complicated, technical and confusing area of the law that constantly changes. In short, it boils down to a cause of action that can be declared directly against the insurance companies when they misbehave and fail to do what they are required to do under the law. Some bad faith claims can multiply the damages awarded by a jury, thereby substantially increasing the amount of the recovery for the plaintiff.
Insurance bad faith claims can arise in the third-party context (where the injured party has brought an injury claim against the at-fault driver, whom their own automobile insurance company is defending). Bad faith claims also arise in the first-party context, where an injured party brings a bad faith claim against their own insurance company. The legal strategies and available damages varies depending on which position the claim is brought. It also varies depending on whether the claim is made under common law bad faith principles or statutory bad faith provisions.
How Insurance Bad Faith Claims Work
Under Colorado law, insurance companies are required to treat their customers fairly. Insurers must work in good faith when managing your claim, whether it stems from an automobile accident or any other problem for which you obtained insurance coverage.
Bad faith insurance attorneys can assist you in obtaining damages from insurers that may have committed malpractice. They represent you in court and arbitration when you have been unfairly refused compensation or insurance benefits. The Max Law Firm can help you hold your insurance company accountable.
Bad faith insurance attorneys are familiar with the complicated mix of applicable insurance legislation in Metropolitan Denver and Northern Colorado.
Ways an Insurance Provider Can Act in Bad Faith
- Deny a legitimate claim covered by your insurance policy
- Failure to promptly investigate your claim
- Failure to promptly pay your claim
- Partial payment of benefits for a valid insurance claim
- Commit fraudulent or malicious actions
An insurance company operates in bad faith if it unreasonably denies policyholders the fair compensation they deserve. Bad faith insurance attorneys will evaluate your case and the language of your insurance policy to determine whether the insurer failed to fulfill its legal obligations, breached your contract, or behaved in bad faith.
Forms of Insurance Bad Faith
- Failure to settle a case within policy limits
If your insurance company exposes you to personal financial risk because it doesn't want to settle a claim against you, the company could be acting in bad faith.
- Unreasonable delay or denial or your underinsured motorist claim
It is crucial to have underinsured and uninsured motorist insurance because uninsured drivers usually lack the financial means to pay for the harm they cause. However, you may find yourself waiting for compensation for your injuries and vehicle damage for months or even years if your insurance company acts in bad faith.
Fighting Insurance Companies for You
The Max Law Firm is committed to defending the rights of the injured and aggrieved. Our attorney Raj Chohan and his team fights for fair and complete compensation from insurers that, all too frequently, put profits ahead of people. We know how insurance companies work and we know how to spot when they are not acting in good faith.