Colorado Springs Insurance Bad Faith Lawyer

Colorado Springs Bad Faith Insurance Attorney: Your Advocate Against Unfair Insurer Practices

As dedicated insurance bad faith lawyers serving Colorado, we understand the frustration when insurance companies fail to honor their obligations. If your insurer has denied legitimate claims, delayed investigations, or offered unreasonably low settlements, our experienced legal team at McCormick & Murphy, P.C. is prepared to fight for your rights and the compensation you deserve.

Treated Fair

When you faithfully pay insurance premiums, you deserve fair treatment when filing claims. Unfortunately, insurance companies often prioritize profits over policyholder interests. While insurers aren’t your advocates, they still have a legal duty to act in good faith under Colorado law.

If your insurance provider has unfairly denied your claim, failed to investigate promptly, offered inadequate compensation, or engaged in deceptive practices, you may have grounds for a bad faith insurance lawsuit. Our Colorado Springs insurance bad faith attorneys have extensive experience holding insurers accountable for their contractual obligations and can help you navigate the complex legal process to secure the compensation you’re entitled to.

What is Insurance Bad Faith?

Insurance bad faith is governed by Colorado statutes (CRS 10-3-1115 and 10-3-1116), which establish that insurers must act in good faith when handling claims. The law explicitly prohibits insurers from “unreasonably delay[ing] or deny[ing] payment of a claim for benefits owed to or on behalf of any first-party claimant.”

A first-party claimant refers to “an individual, corporation, association, partnership, or other legal entity asserting an entitlement to benefits owed directly to or on behalf of an insured under an insurance policy.”

Colorado courts have further developed this statutory framework through case law, providing additional protections for policyholders against unfair insurance practices.

Examples of Bad Faith Insurance in Colorado

Insurance companies may engage in bad faith practices in numerous ways, including:

Refusing to investigate filed claims
Unreasonably delaying claim investigations
Acknowledging claim validity but failing to make appropriate settlement offers
Failing to communicate claim eligibility determinations in a timely manner
Offering settlements substantially below the claim’s value
Ignoring communications from claimants (calls, emails, etc.)
Inadequately explaining policy terms and coverage limitations
Intentionally misrepresenting policy provisions to avoid payment

If you’ve experienced these or other unfair insurance practices, our Colorado Springs bad faith insurance lawyers can evaluate your situation and determine whether you have grounds for legal action under Colorado’s Unfair Claims Practices Act.

Remedies for Plaintiffs Who File a Colorado Bad Faith Insurance Claim

Colorado law provides significant remedies for successful bad faith insurance claims, including:

Double damages (twice the covered benefit amount you were originally entitled to)
Attorney fees and legal costs
Court costs and litigation expenses
Additional damages for breach of insurance contract

Depending on your claim’s value and case duration, these damages can result in substantial compensation. Our experienced Colorado Springs insurance bad faith attorneys can provide a realistic assessment of your potential recovery and guide you through the complex litigation process.

How Do I File a Bad Faith Claim Against an Insurance Company in Colorado Springs?

Filing a bad faith insurance claim requires specialized legal knowledge and experience. Our attorneys will:

Thoroughly evaluate your claim and insurance policy terms
Document all instances of bad faith conduct by your insurer
Calculate the full value of damages you’re entitled to
Handle all communications with the insurance company
Prepare and file necessary legal documents
Represent you aggressively in settlement negotiations and court proceedings
Work to secure maximum compensation under Colorado law

Our firm has successfully handled hundreds of insurance bad faith cases throughout Colorado, helping clients recover the benefits they rightfully deserve plus additional damages for their insurers’ misconduct.

Finding the Right Colorado Bad Faith Insurance Lawyer for Your Case

When you consult with an attorney, you should consider asking the following questions:

Have you handled cases similar to mine in the past?
How can you tell that my experience with the insurance company amounts to bad faith under Colorado law?
What outcomes have you obtained in similar bad faith insurance cases in Colorado?
Do you have past clients with whom I could speak or client testimonials I could read?
What kinds of damages might I expect to receive if I win my case?
How long do you expect my case will last?
Will we be able to settle my case out of court, or will we need to take my case all the way to a verdict?
How will I communicate with my lawyer—phone, email, or text?
How will I pay you, and can we wait until I obtain a settlement or verdict from the case (in other words, do you take cases on a contingency basis)?

You should feel comfortable asking a potential lawyer any questions that seem important to you as you decide who to hire for your case.

Contact a Colorado Springs Bad Faith Injury Attorney

Dealing with an insurance company acting in bad faith can be devastating, especially when you’re counting on that insurance money to cover medical expenses, property damage, or lost wages. The experienced bad faith insurance attorneys at McCormick & Murphy, P.C. are ready to evaluate your claim and fight for your rights.

Call (719) 800-9407 or contact us online today for a free consultation to discuss your Colorado insurance bad faith case. We serve clients throughout Colorado from our offices in Colorado Springs, Denver, and Pueblo.

Insurance Bad Faith Attorney Colorado Springs Q&As

Can I sue my insurance company for bad faith?

Yes, you can sue your insurance company for bad faith if they fail to uphold their contractual obligations or act unfairly or in bad faith in handling your claim. Bad faith claims arise when insurers act dishonestly or unfairly towards their policyholders, denying legitimate claims or offering inadequate settlements. Consulting with experienced bad-faith insurance attorneys can help you understand your rights and options for pursuing legal action against your insurer.

Do I need a lawyer to pursue a bad-faith lawsuit?

The answer to this question is yes. Insurance bad faith claims require knowledge of specific regulations and laws that pertain only to these types of claims. It is a specialty within the practice of personal injury law that many attorneys are not qualified to handle competently.

Bad faith cases can be complex and involve navigating legal statutes, insurance policies, and court procedures. They often result in litigation, and many of those cases are handled in Federal Courts. A knowledgeable attorney can provide valuable guidance, advocate for your rights, and help you pursue fair compensation for your damages.

How are you supposed to combat a nationwide corporation bent on denying you compensation?

Combating a nationwide corporation that denies you compensation is one of the most challenging areas of personal injury law, which is why very few lawyers take those types of cases.

At McCormick & Murphy we have handled hundreds of bad faith insurance claims cases over our decades in practice.

How can I prove that my insurance company is acting in bad faith?

Proving that your insurance company is acting in bad faith typically requires demonstrating that they acted unreasonably or unfairly or in bad faith in handling your claim. This can involve showing that the insurer failed to conduct a thorough investigation, unreasonably denied or delayed payment, or offered an inadequate settlement offer. Consulting with experienced bad-faith insurance lawyers can help you gather evidence and build a strong case to support your bad faith claim.

How does the compensation awarded in a bad faith insurance claim differ from that of a regular insurance claim?

The compensation awarded in a bad faith insurance claim may differ from that of a regular insurance claim in that it may include additional damages beyond the initial claim amount. In addition to reimbursing, you for your original losses, such as medical expenses or property damage, compensation in a bad faith claim may include punitive damages or double damages intended to punish the insurer for their misconduct and deter future bad behavior.

How long do I have to file a bad-faith insurance claim in Colorado Springs, Colorado?

In Colorado Springs, Colorado, the statute of limitations for filing a bad faith insurance claim is typically two years from the date the bad faith conduct occurred. However, this can be difficult to determine, and you must consult with an experienced bad-faith attorney as soon as possible.

How long does an insurance company have to investigate a claim in Colorado?

In Colorado, insurance companies are generally required to investigate claims and make decisions promptly and fairly within a reasonable time frame. While there is no specific deadline set by law, insurers are expected to handle claims efficiently, in good faith, and promptly after a full and fair investigation. If an insurer unreasonably delays or fails to properly and fully investigate a claim, it may be considered bad faith conduct. Consulting with knowledgeable bad-faith insurance lawyers can help you understand your rights and options if you believe your insurer is acting in bad faith.

Insurance Bad Faith Lawyer Services

General Bad Faith Representation

Claim Issues & Practices

Insurance Types & Coverage

Legal Services & Damages

General Bad Faith Representation

Claim Issues & Practices

Insurance Types & Coverage

Legal Services & Damages

You’ve paid your insurance premiums faithfully, trusting that your policy would protect you when you needed it most. But when a legitimate claim is denied, payment is unreasonably delayed, or your losses are undervalued, that trust is shattered. This isn’t just frustrating; it’s a betrayal that can leave you financially and emotionally devastated. When your insurer abandons you, you need a Colorado Springs insurance bad faith lawyer ready to fight for your rights.

At McCormick & Murphy, P.C., we stand with policyholders like you. Our firm, founded in 1995, brings over 60 years of combined legal experience between our founders, Kirk R. McCormick and James “Jay” Murphy. We understand the stress and injustice you’re facing, especially since both Mr. McCormick and Mr. Murphy have experience representing insurance companies from the defense side. This unique insight means we know how insurers think and operate, giving you a significant advantage. Our mission is to hold insurance companies accountable for their broken promises. We’ve helped many Colorado Springs residents recover substantial compensation from insurers who acted in bad faith. Your insurance company has powerful legal teams protecting their interests – you deserve the same fierce protection.

What Is Insurance Bad Faith?

Insurance bad faith occurs when your insurance company fails to uphold its contractual obligations or violates its duty to act fairly. This goes beyond poor customer service; it’s a serious legal violation that can lead to significant financial penalties for the insurer.

Common Signs of Bad Faith Behavior

Insurance companies act in bad faith when they:

Deny valid claims without conducting a proper investigation.
Delay claim processing to pressure you into accepting less than you deserve.
Undervalue your claim without sound justification.
Misrepresent policy terms or coverage to avoid payment.
Fail to communicate important information about your claim promptly.
Refuse to pay claims based on unreasonable interpretations of policy language.
Demand unnecessary documentation to delay payment.
Offer settlements far below your actual damages.

The Legal Standard in Colorado

Colorado law demands that insurance companies act in good faith and deal fairly with policyholders. Under Colorado Revised Statutes 10-3-1115 and 10-3-1116, insurers must:

Investigate claims promptly and thoroughly.
Communicate clearly about your claim’s status.
Pay valid claims within reasonable timeframes.
Provide reasonable explanations for claim denials.
Handle claims with the same urgency they would want for their own.

When insurers violate these standards, they can be held liable for damages beyond the original claim amount, including significant penalties.

Why Insurance Companies Act in Bad Faith

Understanding the motivations behind an insurer’s bad faith practices can help you recognize when it’s happening to you. Insurance companies are businesses, and some prioritize their profits over policyholder rights.

Financial Incentives to Deny Claims

Insurance companies earn money by collecting premiums and minimizing payouts. Some insurers increase profits by:

Implementing aggressive claim denial policies.
Training adjusters to find reasons to deny claims.
Creating bureaucratic obstacles to discourage claimants.
Betting that most people won’t hire lawyers to fight denials.

The “Delay, Deny, Defend” Strategy

Many insurance companies follow an unspoken strategy of delaying claim processing, denying valid claims, and defending their decisions in court. This approach often works because:

Most people don’t fully understand their legal rights.
Claimants often accept low settlements out of desperation.
The cost of fighting denials deters many valid claims.
Time favors insurers who can afford lengthy legal battles.

Corporate Culture Issues

Some insurance companies have developed cultures that reward employees for denying claims rather than helping policyholders. Internal documents from major insurers have revealed:

Bonus systems that reward high denial rates.
Training programs that teach adjusters to minimize payouts.
Performance metrics based on money saved rather than customer satisfaction.
Pressure to close claims quickly without proper investigation.

Types of Insurance Bad Faith Cases We Handle

Our Colorado Springs insurance bad faith lawyers at McCormick & Murphy, P.C., handle a wide range of insurance disputes across multiple coverage areas. We fight for you when your insurer won’t.

Health Insurance Bad Faith

When your health is on the line, health insurance bad faith can be devastating. Insurers may deny or delay coverage for necessary medical treatment, leading to serious consequences. Common practices include:

Denying coverage for prescribed treatments.
Refusing to authorize emergency procedures.
Terminating coverage without proper notice.
Misrepresenting policy benefits.
Delaying approval for time-sensitive treatments.
Requiring unnecessary second opinions to delay care.

Auto Insurance Bad Faith

Auto insurance bad faith often occurs after accidents, when you need coverage most to get back on the road and recover. Examples include:

Denying liability without proper investigation.
Undervaluing vehicle damage or total loss claims.
Refusing to pay for rental cars during repairs.
Delaying payment for medical expenses.
Misrepresenting uninsured motorist coverage.
Failing to defend you against third-party claims.

Homeowners Insurance Bad Faith

Homeowners insurance bad faith can leave you unable to repair or rebuild your home after disasters, leaving your family without shelter. Common practices include:

Denying coverage for storm damage (e.g., hail, wind, flood).
Undervaluing property damage assessments.
Refusing to pay for temporary living expenses.
Misrepresenting policy exclusions.
Delaying inspections to avoid payment.
Failing to investigate claims thoroughly.

Disability Insurance Bad Faith

Disability insurance bad faith can cut off your essential income when you’re unable to work, jeopardizing your financial stability. Examples include:

Denying valid disability claims.
Terminating benefits without medical justification.
Requiring excessive medical documentation.
Misrepresenting policy definitions of disability.
Refusing to pay for independent medical exams.
Delaying benefit payments to create financial pressure.

Life Insurance Bad Faith

Life insurance bad faith adds immense emotional trauma to the grief of losing a loved one, denying families the financial security they were promised. Common practices include:

Denying death benefit claims without cause.
Delaying payment to beneficiaries.
Misrepresenting policy terms to avoid payment.
Claiming suicide or fraud without evidence.
Refusing to investigate claims properly.
Demanding excessive documentation from grieving families.

Our firm also handles cases of wrongful denial of insurance benefit claims more broadly, encompassing a variety of scenarios where an insurer fails to uphold its duty.

Warning Signs Your Insurance Company Is Acting in Bad Faith

Recognizing bad faith behavior early can help you protect your rights and build a stronger case. Watch for these warning signs:

Communication Red Flags

Unreturned phone calls or emails.
Vague responses to direct questions.
Contradictory information from different representatives.
Refusal to provide written explanations.
Pressure to accept quick settlements.
Threats to cancel your policy.

Investigation Problems

Refusing to investigate your claim at all.
Conducting superficial or biased investigations.
Ignoring evidence that supports your claim.
Relying on unqualified “experts” to deny claims.
Failing to interview witnesses.
Refusing to inspect damaged property.

Unreasonable Delays

Taking months to respond to your claim.
Repeatedly requesting the same documentation.
Scheduling and canceling appointments multiple times.
Claiming they need more time without explanation.
Waiting until deadlines to communicate.
Creating artificial deadlines to pressure you.

Denial Tactics

Denying claims without explanation.
Citing policy exclusions that don’t apply.
Misinterpreting policy language.
Changing the reason for denial multiple times.
Denying claims based on pre-existing conditions that don’t exist.
Refusing to reconsider denials despite new evidence.

If you recognize any of these signs, it’s time to speak with an attorney. Contact McCormick & Murphy, P.C. today for a free consultation.

The True Cost of Insurance Bad Faith

Insurance bad faith doesn’t just impact your immediate claim; it can have devastating, long-term consequences for you and your family.

Financial Damages

The financial impact extends far beyond your original claim:

Lost income while fighting for benefits.
Additional medical expenses when treatment is delayed.
Interest and penalties on unpaid bills.
Credit damage from inability to pay debts.
Legal fees to fight wrongful denials (though Colorado law often allows recovery of these in bad faith cases).
Missed opportunities from delayed settlements.

Emotional and Physical Stress

Insurance bad faith creates tremendous stress that can affect your health and relationships:

Anxiety about financial security.
Depression from feeling powerless.
Relationship strain from financial pressure.
Physical health problems from chronic stress.
Sleep disorders and concentration problems.
Loss of trust in essential institutions.

Secondary Consequences

Bad faith insurance practices can trigger a cascade of additional problems in your life:

Foreclosure when you can’t pay your mortgage.
Bankruptcy from overwhelming medical debt.
Business failure when disability benefits are denied.
Family conflicts over financial stress.
Career damage from inability to focus on work.
Social isolation due to financial constraints.

How Colorado Law Protects You from Insurance Bad Faith

Colorado has strong laws protecting consumers from insurance bad faith. We help you use these laws to your full advantage.

Statutory Protections

Colorado Revised Statutes provide specific protections against insurance bad faith:

CRS 10-3-1115 prohibits unfair claim settlement practices, including:

Misrepresenting policy provisions.
Failing to acknowledge claims promptly.
Refusing to pay claims without conducting reasonable investigations.
Compelling policyholders to initiate litigation to recover amounts due.

CRS 10-3-1116 allows you to recover damages when insurers violate these standards, including:

The amount of your original claim.
Additional damages for financial harm.
Attorney fees and court costs.
Punitive damages in cases of willful misconduct.

Common Law Bad Faith Claims

Beyond statutory protections, Colorado recognizes common law bad faith claims based on the covenant of good faith and fair dealing implied in every insurance contract. This means insurers must:

Act reasonably in investigating claims.
Communicate honestly about claim status.
Consider your interests alongside their own.
Avoid conflicts of interest in claim handling.

Unreasonable Delay Standards

While Colorado doesn’t specify exact timeframes for claim resolution, courts have established that insurers must act within reasonable time limits based on:

The complexity of your claim.
The availability of necessary information.
The urgency of your situation.
Industry standards for similar claims.

Damages Available in Bad Faith Cases

Colorado law allows you to recover multiple types of damages in bad faith cases, ensuring you are made whole:

Economic Damages:

Your original claim amount.
Interest on delayed payments.
Consequential damages from the delay.
Lost income and business opportunities.
Additional expenses caused by the denial.

Non-Economic Damages:

Emotional distress.
Pain and suffering.
Loss of enjoyment of life.
Damage to reputation.
Relationship impacts.

Punitive Damages:

Available when insurers act with willful misconduct.
Designed to punish and deter bad faith behavior.
Can be substantial in cases of egregious conduct, as evidenced by our firm’s success in securing large jury awards in bad faith cases.

Recent Colorado Bad Faith Verdicts Show Courts Are Fighting Back

Colorado courts are sending a clear message: insurance bad faith won’t be tolerated. Recent verdicts demonstrate the serious financial consequences insurers face when they violate their obligations.

Record-Setting Verdicts

In 2025, Colorado courts awarded substantial damages in bad faith cases, including a $145 million verdict that made national headlines. This verdict shows that juries are willing to hold insurers accountable for their actions and award damages that reflect the true harm caused by bad faith practices. This trend reinforces the power of policyholders when they have strong legal representation.

Judicial Action Against Bad Faith

Colorado judges are increasingly taking action against insurance company tactics designed to delay or deny legitimate claims. Courts are:

Sanctioning insurers for discovery violations.
Allowing broader damage claims in bad faith cases.
Permitting punitive damage awards more frequently.
Rejecting technical defenses that don’t address the merits.
Expediting trials in cases involving urgent needs.

Impact on Insurance Company Behavior

These large verdicts are forcing insurance companies to reconsider their claim handling practices. Some insurers are:

Revising claim denial procedures.
Providing additional training to adjusters.
Settling cases earlier to avoid trial exposure.
Implementing better oversight of claim decisions.
Investing in technology to improve claim processing.

What Makes a Strong Insurance Bad Faith Case

Not every insurance dispute is considered bad faith. Understanding what makes a strong case helps you assess whether you have grounds for legal action.

Essential Elements of Bad Faith

To prove insurance bad faith in Colorado, you must establish:

Valid Insurance Coverage

You had an active insurance policy.
Your claim falls within the policy coverage.
You complied with policy requirements.
The insurer had a duty to pay your claim.

Unreasonable Conduct

The insurer’s actions were objectively unreasonable.
They lacked a reasonable basis for their decision.
Their conduct violated industry standards.
They failed to follow their own procedures.

Knowledge of Unreasonableness

The insurer knew or should have known their conduct was unreasonable.
They ignored obvious evidence supporting your claim.
They acted with reckless disregard for your rights.
They continued unreasonable conduct after being notified.

Damages

You suffered financial harm from the bad faith conduct.
The harm was a direct result of the insurer’s actions.
You can prove the amount of your damages.
The damages extend beyond the original claim amount.

Evidence That Strengthens Your Case

Strong bad faith cases typically include:

Documentation of Insurer Conduct:

Claim files and internal communications.
Recorded phone conversations.
Email exchanges with adjusters.
Letters and formal correspondence.
Investigation reports and expert opinions.

Proof of Unreasonableness:

Industry standards for claim handling.
Expert testimony about proper procedures.
Comparison to how similar claims were handled.
Evidence of conflicts of interest.
Internal company policies and training materials.

Damage Evidence:

Medical records showing health impacts.
Financial records proving economic losses.
Employment records showing lost income.
Expert testimony about future damages.
Witness statements about emotional distress.

Timing Considerations

The timing of your bad faith claim can significantly impact your case:

Statute of Limitations:

Bad faith claims must be filed within three years in Colorado.
The clock typically starts when you discover the bad faith conduct.
Delays in filing can weaken your case.
Early action preserves evidence and witnesses.

Claim Development:

Bad faith often becomes apparent over time.
Pattern evidence strengthens your case.
Multiple incidents of bad faith increase damages.
Continuing conduct can extend the limitations period.

Our Proven Process for Fighting Insurance Bad Faith

When you hire our Colorado Springs insurance bad faith lawyers at McCormick & Murphy, P.C., we follow a systematic approach designed to maximize your recovery and hold insurers accountable. We handle the complexities so you can focus on your life.

Step 1: Initial Case Evaluation

We begin with a thorough review of your unique situation:

Claim Analysis: We review your insurance policy, claim history, and the insurer’s conduct to identify bad faith violations and assess the strength of your case and potential damages.
Evidence Gathering: We start collecting all relevant documentation, identify key witnesses, and obtain preliminary expert opinions.
Strategy Development: We build a customized legal strategy, identify the most effective legal theories, and set clear expectations for the timeline and potential outcomes.

Step 2: Investigation and Discovery

We conduct detailed investigations to build the strongest possible case for you:

Document Discovery: We obtain complete claim files, internal communications, and other relevant records from the insurer.
Witness Interviews: We depose insurance company employees, interview independent witnesses, and secure expert witness testimony.
Expert Analysis: We retain industry, medical, and economic experts to analyze claim handling, health impacts, and calculate full damages.

Step 3: Negotiation and Settlement

Many bad faith cases can be resolved without a trial. We negotiate fiercely on your behalf:

Settlement Preparation: We prepare strong demand packages, document all damages, and develop negotiation strategies.
Negotiation Process: We present compelling initial demands, strategically respond to counteroffers, and use our discoveries to improve your offers.
Settlement Evaluation: We compare settlement offers to potential trial outcomes, consider your circumstances, and provide clear recommendations, ensuring the settlement covers all appropriate damages.

Step 4: Trial Preparation and Litigation

If a fair settlement isn’t possible, we are fully prepared to take your case to trial and fight for you in court:

Pre-Trial Preparation: We complete all necessary discovery, prepare witnesses, and handle all pre-trial motions.
Trial Presentation: We present compelling opening statements, examine witnesses effectively, introduce evidence strategically, and deliver persuasive closing arguments.

Post-Trial Actions: We handle any post-trial motions, assist with judgment collection, and appeal adverse decisions when appropriate, ensuring you receive full compensation.

Why Choose McCormick & Murphy, P.C. for Your Insurance Bad Faith Claim

When your insurance company has betrayed your trust, you need lawyers who will fight relentlessly for your rights. Our track record of success in insurance bad faith cases demonstrates our commitment to holding insurers accountable.

Specialized Experience

Insurance bad faith law demands specialized knowledge and experience. We bring that to your case:

Deep Understanding of Insurance Law: Extensive knowledge of Colorado insurance statutes (CRS 10-3-1115 and 10-3-1116), federal regulations, policy interpretation, and industry standards.
Trial Experience: Our founders, Kirk R. McCormick and James “Jay” Murphy, have collectively tried hundreds of insurance cases to verdict in state and federal courts, with successful appeals and a track record of large jury verdicts. Their prior experience representing insurance companies provides an invaluable “insider’s” perspective.
Client-Focused Approach: Personal attention to every case, regular communication, flexible payment arrangements, and compassionate support during difficult times. Our attorneys provide direct phone numbers and email addresses to clients.

Resources to Fight Large Insurance Companies

Insurance companies have vast resources to defend against bad faith claims. We level the playing field for you:

Financial Resources: Ability to advance all case expenses, access to top experts and investigators, and financial backing for lengthy litigation, ensuring your case is never hampered by cost.
Professional Network: Strong relationships with insurance industry, medical, and economic specialists, investigators, and other specialized attorneys nationwide.
Technology and Support: Advanced case management systems, electronic discovery capabilities, and cutting-edge trial presentation technology.

No Fee Unless We Win

We handle insurance bad faith cases on a contingency fee basis. This means:

No upfront costs to hire our firm.
No attorney fees unless we recover money for you.
We advance all case expenses during litigation.
Our fees come from the recovery, not your pocket.
You pay nothing if we don’t win your case.

This arrangement aligns our interests with yours, ensuring we are fully motivated to achieve the best possible outcome for your case.

Frequently Asked Questions About Insurance Bad Faith

How Long Do I Have to File a Bad Faith Claim?

In Colorado, you typically have three years from the date you discover the bad faith conduct to file a lawsuit. However, this timeline can be complex:

The “discovery rule” may extend the deadline.
Continuing bad faith conduct can reset the clock.
Different types of claims may have different deadlines.
Waiting too long can weaken your case by eroding evidence.

Don’t wait to consult with an attorney. Early action preserves evidence and protects your rights.

What Damages Can I Recover in a Bad Faith Case?

Colorado law allows you to recover multiple types of damages to compensate you fully:

Economic Damages:

The full amount of your original claim.
Interest on delayed payments.
Consequential damages from the delay (e.g., lost business opportunities, credit damage).
Lost income and business opportunities directly caused by the bad faith.
Additional expenses caused by the denial.

Non-Economic Damages:

Emotional distress and mental anguish.
Pain and suffering related to the bad faith conduct.
Loss of enjoyment of life due to the insurer’s actions.
Damage to reputation.

Punitive Damages:

Available when insurers act with willful and wanton misconduct.
Designed to punish the insurer and deter future bad behavior.
Can be substantial in egregious cases, as demonstrated by our firm’s success.

Attorney Fees:

Colorado law (CRS 10-3-1116) allows recovery of attorney fees in bad faith cases.
This ensures you don’t pay out of pocket for the insurer’s wrongdoing.
Fees are typically awarded in addition to other damages.

Do I Need to Exhaust All Appeals Before Filing a Bad Faith Claim?

No, you generally do not need to exhaust all internal appeals before filing a bad faith lawsuit. In fact, continuing to participate in a clearly biased appeals process may actually weaken your case by:

Delaying your lawsuit beyond the statute of limitations.
Allowing the insurer to destroy or lose evidence.
Giving the insurer more opportunities to create justifications for their denial.

However, the specific circumstances of your case may affect this analysis, so it’s important to consult with an attorney early in the process.

Can I Sue for Bad Faith if My Claim Was Eventually Paid?

Yes, you can still sue for bad faith even if your claim was eventually paid. Bad faith liability focuses on the insurer’s conduct during the claim process, not just the final outcome. You may be entitled to damages for:

Delays in payment.
Emotional distress caused by the insurer’s conduct.
Financial losses from the delay.
Interest on the delayed payment.
Attorney fees incurred to force payment.

The key is whether the insurer’s conduct was unreasonable, regardless of whether they ultimately paid the claim.

What if My Insurance Company Says They’re Still Investigating?

Insurance companies have a duty to investigate claims promptly and thoroughly, but they cannot use ongoing investigations as an excuse to delay payment indefinitely. Signs that an “investigation” may be bad faith include:

Investigations that continue for months without progress.
Repeated requests for the same documentation.
Failure to communicate about investigation status.
Refusing to explain what they’re investigating.
Using unqualified investigators or experts.
Ignoring evidence that supports your claim.

If your insurer’s investigation seems unreasonable, contact an attorney to evaluate whether they’re acting in bad faith.

How Much Does It Cost to Hire a Bad Faith Attorney?

Our insurance bad faith attorneys work on a contingency fee basis, which means:

No upfront costs to hire our firm.
No attorney fees unless we win your case.
We advance all case expenses during litigation.
Our fees are a percentage of your recovery.
You owe nothing if we don’t recover money for you.

This arrangement ensures that everyone has access to quality legal representation, regardless of their financial situation.

Take Action Against Insurance Bad Faith Today

Insurance bad faith is a serious violation of your rights that can have devastating consequences for you and your family. The longer you wait to take action, the more difficult it becomes to hold your insurer accountable and recover the compensation you deserve.

Why Time Matters

Acting quickly in insurance bad faith cases provides several advantages:

Evidence Preservation:

Documents may be destroyed or lost over time.
Witnesses’ memories fade.
Electronic data may be overwritten.
Company employees may leave or be transferred.

Legal Deadlines:

Statute of limitations deadlines (3 years for bad faith) are strict.
Waiting too long can bar your claim entirely.
Early action preserves all legal options.
Prompt filing demonstrates the seriousness of your claim.

Financial Protection:

Delays can worsen your financial situation.
Interest and penalties may accumulate.
Credit damage can become permanent.
Opportunities for financial recovery may be lost.

Signs You Need Legal Help Now

Contact our Colorado Springs insurance bad faith lawyers immediately if:

Your insurance company has denied your legitimate claim.
Your insurer is delaying payment without reasonable justification.
You’re being pressured to accept an inadequate settlement.
Your insurance company is misrepresenting your policy coverage.
You’re experiencing financial hardship due to claim delays.
Your insurer is requesting excessive documentation.
You feel like your insurance company is treating you unfairly.

What Happens When You Call McCormick & Murphy, P.C.

When you contact our firm, we’ll:

Listen to your story and understand your unique situation.
Evaluate your case for potential bad faith violations, leveraging our decades of experience.
Explain your legal rights and clear options.
Provide an honest assessment of your case’s strengths and potential for recovery.
Discuss next steps and our legal strategy tailored to your situation.
Answer all your questions about the legal process and what to expect.

Our Commitment to You

When you hire our Colorado Springs insurance bad faith lawyers at McCormick & Murphy, P.C., you’re getting:

Experienced attorneys who truly understand insurance law and how insurers operate.
Aggressive representation against powerful insurers.
Personal attention to your case and concerns, with direct attorney access.
No fees unless we win your case, ensuring accessible justice.
A focus on maximum recovery for your damages, including punitive damages where applicable.
Professional support throughout the entire legal process.

Don’t let your insurance company get away with bad faith conduct. You paid your premiums faithfully, and you deserve the coverage you were promised. Our experienced Colorado Springs insurance bad faith lawyers are ready to fight for your rights and hold your insurer accountable.

Call McCormick & Murphy, P.C. today at (719) 800-9407 to schedule your free consultation. We’re here to help you get the justice and compensation you deserve.

Your insurance company has legal teams protecting their interests. You deserve the same level of protection. Contact us now to learn how we can help you fight back against insurance bad faith and recover the compensation you’re owed.