Insurance Tactics And Bad Faith
People buy insurance to protect themselves and their loved ones from catastrophes and accidents. Taking out insurance provides the purchaser with the peace of mind that comes from knowing that if anything happens to you or to your property, your family is protected.
However, all too often when a policyholder goes to collect on a policy, a wall goes up. Instead of honoring their commitment to pay out, the insurance company puts one hurdle after another in the path of the policyholder. This is when it is time to contact our personal injury lawyers who have the experience in dealing with insurance company bad faith claims.
What Constitutes Bad Faith?
Basically, it’s when your insurance company treats you in an unfair manner or beneath the standard of care. Insurance companies have an obligation under Colorado law to act in good faith, which requires insurance companies to do the following:
- Promptly investigate claims
- Promptly pay claims
- Communicate regularly with the claimant regarding the status of the claim
- Promptly pay any undisputed portion of claim
- Provide a prompt and reasonable explanation of any claim denial or offer compromise settlement
The failure of an insurance company to act in good faith can give rise to a bad faith action that can be brought by a personal injury law firm.
Personal Injuries In Colorado
As a result of some recent changes to the law in Colorado, you have the right to hold your insurance company accountable for unfair claim settlement practices. In fact, if your insurer acts in bad faith by offering you an unreasonably low settlement or threatening cancellation, you might be able to collect up to double your actual damages and your attorney’s fees. And in some instances the court might even award punitive damages.
Our injury lawyers can explain prohibited bad faith insurance practices and determine whether you were victimized by your insurance company.
How We Can Help
If you have questions about personal injuries, or are seeking the assistance of personal injury lawyer in Denver or Boulder, contact us at 303-442-3366 or send an email. Our law firm is ready to resolve your legal problems. We are waiting to schedule a consultation at no charge to you with an experienced attorney.