Your Insurance Company Owes You More Than Excuses

When an insurer denies a valid claim, drags out the process, or offers a fraction of what your injuries are worth, that is not just frustrating — it may be illegal. Colorado law requires insurance companies to deal with policyholders and claimants in good faith. When they don't, you have the right to hold them accountable. At The Fields Group, we represent Coloradans whose insurers have treated a legitimate claim as a problem to be managed rather than an obligation to be honored.

What Insurance Bad Faith Actually Means

Insurance bad faith occurs when an insurer breaches its duty to handle claims fairly, promptly, and honestly. Under Colorado law — including C.R.S. § 10-3-1115 and § 10-3-1116 — an insurer that unreasonably delays or denies payment of a covered claim can be held liable for twice the covered benefit, plus attorney fees and costs. That statutory remedy exists precisely because insurers have enormous leverage over individual claimants, and the legislature recognized that financial consequences are the only thing that changes behavior.

 

Bad faith is not limited to outright denials. It includes any unreasonable conduct in the claims handling process — lowball offers, manufactured disputes over coverage, pressure tactics designed to get you to settle before you understand the full extent of your damages, and failure to investigate a claim properly.

Common Forms of Insurance Bad Faith in Colorado

Insurance companies have developed a range of tactics to reduce or eliminate what they pay on legitimate claims. The following conduct may support a bad faith claim:

 

  • Denying a claim without conducting a reasonable investigation
  • Unreasonably delaying payment after liability has been established
  • Offering a settlement that bears no reasonable relationship to the actual value of the claim
  • Misrepresenting policy terms or coverage to discourage a claim
  • Failing to communicate promptly and honestly about the status of a claim
  • Pressuring a claimant to accept a quick settlement while injuries are still developing
  • Refusing to pay the full amount owed under an underinsured or uninsured motorist policy

 

If your insurer — or the at-fault party's insurer — has done any of these things, you may have a bad faith claim on top of your underlying personal injury or property claim.

First-Party vs. Third-Party Bad Faith

First-party bad faith involves your own insurance company. This is most common in uninsured motorist (UM) and underinsured motorist (UIM) claims, where your insurer is obligated to step in when the at-fault driver cannot fully cover your losses. When your own insurer disputes, delays, or underpays that claim without a reasonable basis, it may be acting in bad faith.

 

Third-party bad faith involves the at-fault party's insurer. If that insurer fails to settle a clear liability claim within policy limits, exposing its own insured to an excess judgment, the insured may have a bad faith claim against their own carrier — and in some circumstances, that claim can be pursued by the injured party.

 

Both forms of bad faith arise frequently in Colorado auto accident and personal injury cases. Understanding which type applies to your situation shapes the legal strategy from the start.

Why Bad Faith Cases Require Trial-Ready Counsel

Insurance companies are not afraid of attorneys who settle every case. They track which firms go to trial and which ones don't, and they adjust their offers accordingly. A settlement mill may resolve your underlying injury claim without ever examining whether the insurer's conduct crossed the line into bad faith — leaving significant compensation on the table.

 

Doug Fields brings 36 years of litigation and trial experience across Colorado, supported by Catalina Miranda, our Sr. Litigation Paralegal. We take cases to verdict when the evidence supports it, and insurers know that. That credibility at the Jefferson County Courthouse and throughout the Colorado court system changes what an insurer is willing to put on the table before trial. When you hire The Fields Group, you are retaining an attorney and legal team who will evaluate your bad faith exposure from day one — not as an afterthought once the injury claim is resolved.

What Damages Are Available in a Colorado Bad Faith Claim

Colorado's bad faith statutes provide meaningful remedies that go beyond the underlying claim value. Depending on the facts and the theory of recovery, damages in a bad faith case may include:

 

  • The full amount of the covered benefit that was wrongfully delayed or denied
  • Two times the covered benefit under the statutory bad faith claim (C.R.S. § 10-3-1116)
  • Attorney fees and court costs
  • Consequential damages caused by the insurer's unreasonable conduct
  • Punitive damages in cases involving particularly egregious or willful conduct

 

These remedies are designed to make the insurer's misconduct more costly than simply paying what was owed in the first place. When we evaluate a bad faith claim, we assess every available theory of recovery — not just the easiest one to prove.

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Common FAQs

You Have Already Paid for the Coverage You Were Promised

  • What is the statute of limitations for an insurance bad faith claim in Colorado?

    Colorado's statutory bad faith claim under C.R.S. § 10-3-1116 is subject to a two-year statute of limitations. The common law bad faith claim may carry a different limitations period depending on how it is framed. If you believe your insurer has acted in bad faith, contact an attorney promptly — delays can limit your options.

  • Does bad faith only apply to my own insurance company?

    No. While first-party bad faith involving your own insurer is the most common scenario, third-party bad faith claims against an at-fault party's insurer are also recognized in Colorado under certain circumstances. The facts of your specific case determine which theories apply.

  • Can I bring a bad faith claim if my injury claim is still open?

    Yes. In many cases, the bad faith conduct is occurring while the underlying injury claim is still being resolved. You do not need to wait for a final resolution of the injury claim before consulting an attorney about potential bad faith exposure.

  • What if the insurer eventually paid — can I still have a bad faith claim?

    Possibly. If the insurer unreasonably delayed payment, the delay itself may support a bad faith claim even if the amount was eventually paid. The statute penalizes both denial and unreasonable delay.

  • How much does it cost to hire a bad faith attorney?

    The Fields Group handles personal injury and insurance bad faith cases on a contingency fee basis. You pay no attorney fees unless we recover compensation for you. We also front the litigation costs — you are not required to pay expenses out of pocket while the case is pending.

  • What should I do if I think my insurer is acting in bad faith?

    Stop communicating with the insurer without legal counsel. Document every interaction — dates, names, what was said. Preserve all correspondence, denial letters, and policy documents. Then contact an attorney who handles bad faith cases before you agree to anything or sign any releases.