What is a bad faith claim?

A bad faith claim is a lawsuit brought against an insurance company that has failed to comply with the terms of contract. A Denver bad faith attorney can bring a lawsuit on behalf of the insured against his or her own insurance company, or on behalf of a third party who was assigned the right by the insured. Primarily, this type of claim is brought if the insurance company refuses to pay on a claim or otherwise does not behave in a manner required by law.

While some behaviors of an insurance company may seem unprofessional and improper, they do not rise to the level of bad faith under Colorado law. Just because an insurance adjuster’s demeanor seems uncooperative or unapproachable does not mean they have violated the law. This is why it is recommended that you seek a lawyer before you take action.

Good Faith and Fair Dealing Standards

Under the laws of Colorado, insurance companies are required to act in good faith. As part of this fiduciary duty, insurance companies are mandated to do the following:

  • investigate your claim without delay;
  • pay your claim promptly, which includes immediate payment of any undisputed part of the claim;.
  • communicate with you regularly regarding the status of your claim; and
  • give you a timely and reasonable explanation of the denial of any claim or offer a compromise settlement.

If an insurer fails or rejects to do any of the required duties, then you may have a bad faith claim on your hands. Your best recourse is to hire an attorney to enforce your contractual legal rights.

For Careful Handling of Your Claim, Call Denver Bad Faith Attorney D.J. Banovitz

If you have encountered an insurance company which you believe has engaged in bad faith in settling your claim in Denver, D.J. Banovitz Personal Injury Law can help. If you would like to learn more about personal injury claims in Denver, order our free book: 7 Costly Mistakes that Can Ruin Your Colorado Injury Case. Call us at 303-300-5060 or fill out our online contact form for a free, no pressure, no obligation consultation, and get honest, compassionate answers to your questions.