Fremont County · Insurance bad faith
Cañon City Insurance Bad Faith Lawyers
In Cañon City, we help policyholders fight wrongful claim denials and underpayments—free consultation, no fee unless we recover.
What Is Insurance Bad Faith?
Bad faith can occur when an insurer fails to handle your claim honestly and fairly. This includes unreasonable delays in processing, unjustified denials of coverage, and underpayment of benefits you are entitled to under the policy. Uninsured and underinsured motorist claims are particularly vulnerable to bad faith handling—insurers may drag out investigations, demand excessive documentation, or reject claims based on thin pretexts.
Colorado law requires insurers to investigate claims promptly, communicate their findings clearly, and pay or deny benefits within a reasonable time. If an insurer ignores this duty, you have a right to sue for breach of the implied covenant of good faith and fair dealing. We gather the facts about how your claim was handled and hold the insurance company accountable.
How We Build Your Case
We request the complete claim file through discovery—the policy itself, all correspondence between you and the insurer, recorded statements, medical and wage records you submitted, coverage letters, payment records, and the insurer's internal evaluations and reserves. This record tells the story of how your claim was handled and where the insurer fell short.
We examine the timeline of every interaction: when you filed, when the insurer acknowledged receipt, when it asked for documents, when you provided them, and when and why the insurer delayed or denied payment. We also analyze the stated basis for any denial or delay against the actual policy language and the evidence the insurer had at the time. This analysis forms the foundation of your bad faith claim in Fremont County Combined Courts.
Local investigations may involve Cañon City Police Department and Fremont County Sheriff’s Office, policies covering Cañon City residents and disputes that may proceed in Fremont County Combined Courts.
Insurance bad faith claims require proof that your insurer failed its duty to handle your claim fairly and promptly. Gather and preserve:
- Original insurance policy and all amendments or endorsements
- Complete record of your claim submission, including date filed and proof of delivery
- All written correspondence from the insurer (denials, coverage letters, explanations)
- Recorded statements or interviews conducted by the insurer's adjuster
- Medical records, bills, and reports submitted to support your claim
- Wage loss documentation and employment records submitted with the claim
- Payment history, including partial payments or reserve amounts held
- Internal insurer documents (evaluation notes, reserve determinations, claim-file communications) obtained during discovery
- Timeline of all delays, gaps in communication, or requests for additional information
- Documentation showing the stated reason for denial or delay
- Correspondence with the insurer's customer service or appeals department
- Any appraisal, independent medical exam (IME), or third-party investigation reports
- Evidence of comparable claims handling or industry standards
- Notice of coverage or denial provided to you
- Dates and summaries of all phone calls with the insurer
This evidence establishes whether your insurer's decision was reasonable, whether delays were justified, and what damages you suffered.
Medical Records and Documentation
In bad faith cases, medical records serve two purposes: they show the severity of your injury or illness (which supports the value of your underlying claim), and they can expose the insurer's unreasonable investigation. If the insurer failed to obtain or review medical records, mischaracterized them, or demanded repeated evaluations without cause, that conduct strengthens your bad faith claim.
We work with you to gather all treatment records from CommonSpirit St. Thomas More Hospital and other providers, along with any wage loss documentation and ongoing care needs. If the insurer's handling of these records was unreasonable—for example, requesting the same records multiple times, sitting on medical evidence, or ignoring it entirely—we use that record to show bad faith.
Official Cañon City hospital, report, crash-record, and court links →
Examples of Damages in Bad Faith Claims
- The unpaid or underpaid benefit amount—the core claim the insurer wrongfully handled
- Interest on the unpaid benefit from the date it should have been paid
- Costs of the insurer's unreasonable investigation or repeated demands for documents
- Emotional distress caused by wrongful denial or delay, especially in urgent coverage situations
- Punitive damages if the insurer's conduct was intentional or reckless (available in Colorado)
- Attorney fees and costs in cases where bad faith is proven
In Fremont County Combined Courts, we pursue the full measure of your damages, including the underlying benefit and all consequential harms caused by the insurer's bad faith.
What clients say about McCormick & Murphy
Real outcomes and reviews. Check Google reviews for the office that serves Cañon City — and read client testimonials.
A pickup hit me from behind on Hwy 50 east of Pueblo. The insurer offered $2,600. McCormick & Murphy helped with treatment, filed suit, and the case settled at mediation for $165,000.
C. O., Pueblo · Highway 50 crash
Prior results do not guarantee a similar outcome. Every case depends on its facts, coverage, venue, and evidence.
Cañon City Insurance bad faith FAQ
What exactly is insurance bad faith in Colorado?
Bad faith can occur when an insurer fails to treat your first-party claim—such as a denial, delay, or underpayment of benefits—fairly and in good faith. Colorado law requires insurers to investigate promptly, communicate clearly, and pay covered benefits without unreasonable delay. Bad faith can involve denying a claim without proper investigation, ignoring evidence of coverage, delaying payment indefinitely, or failing to explain the reason for denial. This applies to homeowner's, auto, health, and disability claims, including uninsured and underinsured motorist (UIM) coverage.
How long do I have to file a bad faith claim against my insurer?
Deadlines depend on your policy language, the type of benefit involved, and the legal theory you pursue. Some Colorado bad faith claims are subject to the two-year statute of limitations that starts when you knew or should have known of the insurer's breach. Others may have different periods tied to the policy or the underlying injury claim. Because timing is critical and can affect your rights, you should preserve your complete claim file and policy immediately and have an attorney review your specific situation to confirm the deadline that applies.
What damages can I recover in a bad faith case?
Damages in a bad faith case typically include the benefit that was wrongfully denied or delayed, plus interest on that amount. You may also recover damages for emotional distress, loss of use of funds, and in some cases, punitive damages if the insurer's conduct was outrageous. The exact damages available depend on the facts of your claim, the policy terms, and the legal basis for the bad faith claim. An attorney can evaluate your claim file and communications to estimate what damages you may pursue.
Do I need to go to trial, or can I settle my bad faith claim?
Many bad faith claims settle before trial, especially once the insurer recognizes the strength of your evidence or faces the cost of litigation. Others proceed to trial in Fremont County Combined Courts if settlement negotiations do not resolve the dispute. Whether your case settles or goes to trial depends on the insurer's willingness to negotiate, the strength of the evidence in your claim file, and your goals. McCormick & Murphy will evaluate your case and discuss your options.
How does McCormick & Murphy charge for bad faith cases?
McCormick & Murphy handles insurance bad faith claims on a contingency fee basis. The firm earns an attorney fee only if your case is settled or won. You do not pay an hourly rate out of pocket. Advanced case costs—such as court filing fees, discovery expenses, and expert witness fees—are separate from the contingency fee and are discussed with you separately. This arrangement aligns our incentive with yours: we succeed only if you recover.
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