El Paso County · Insurance bad faith
Fountain Insurance Bad Faith Lawyers
Fountain insurance bad faith claim? We handle delayed or denied benefits on contingency.
When an Insurer Fails Its Duty
Insurance companies in Colorado have a legal obligation to handle your claims fairly, promptly, and in good faith. That means reviewing your policy carefully, investigating your loss reasonably, and paying what they owe without unnecessary delay. When they ignore that duty—by dragging out a decision, denying a claim without solid reasoning, or underpaying a valid benefit—you may have a bad faith claim. We represent Fountain residents and families across El Paso County who have been caught in claim delays or unfair denials, whether the policy covers medical expenses, uninsured motorist protection, or other critical benefits.
Bad faith is not simple disagreement over a claim's value. It occurs when an insurer acts with conscious indifference to your rights, prioritizes profit over fair investigation, or lacks any reasonable basis for its decision. Our job is to show that the insurer knew or should have known its conduct was unreasonable. That proof comes from the policy language, the claim file itself, and what the insurer actually did—or failed to do—while handling your claim.
Building Your Bad Faith Case
Discovery in bad faith litigation opens the insurer's entire claim file. We obtain the original policy, every email and letter exchanged, recorded statements you may have given, medical records and bills you submitted, coverage opinions the insurer generated, payment records, and internal evaluations or reserve notes that show how the company actually assessed your claim. That documentation often reveals the timeline of delay, the reasoning (or lack thereof) behind a denial, and whether the insurer had conflicting information it chose to ignore. We also request the adjuster's training records, handling guidelines, and any similar claims handled differently to show whether the insurer applied a double standard.
Depositions and written questions force the insurer's decision-makers to explain, under oath, why they did what they did. We compare their stated reasons to the documents in the file. Contradictions and gaps in explanation often speak louder than words. A claim handler might say they needed more information, but records show you provided it weeks earlier. They might cite a policy exclusion, but the plain language does not support it. We also retain insurance experts who review the file independently and testify about industry standards—what a reasonable insurer would have done in the same situation.
Local investigations may involve Fountain Police Department and El Paso County Sheriff’s Office, policies covering Fountain residents and disputes that may proceed in El Paso County Combined Courts.
A bad faith claim requires proof that your insurer failed to handle your first-party claim fairly and promptly. Start by gathering and organizing these key items:
- Original insurance policy and all policy renewal or amendment documents
- Written proof that you submitted a complete and proper claim to the insurer
- All correspondence from the insurer, including denial letters, coverage letters, and requests for additional information
- Dates and summaries of all telephone calls with the insurer (names, times, topics discussed)
- Medical records, bills, and provider statements you submitted to support your claim
- Wage loss documentation or statements from your employer submitted with the claim
- Any recorded statement given to the insurer's investigator and transcript or recording of that statement
- Internal insurer documents obtained during discovery, including coverage analysis, reserves, and evaluation notes
- Payment records showing what the insurer paid and when, including dates of checks or transfers
- Written explanation from the insurer for any delay, partial payment, or denial of your claim
- Timeline showing how long the insurer took to investigate, communicate, and make a coverage decision
- Uninsured or underinsured motorist (UM/UIM) coverage documents if applicable to your accident
Gather these materials and preserve the complete claim-handling timeline before deadlines expire.
Medical Records and Causation in Bad Faith Claims
Bad faith claims are not the same as medical malpractice or injury cases. We are not arguing that a doctor made a mistake or that your injury is worse than you claim. Instead, we are proving that the insurer handled your claim improperly. Medical records do become important evidence, though. If you submitted bills and treatment notes to support a claim for coverage—say, for emergency care at UCHealth Memorial Hospital Central in Colorado Springs following an accident on U.S. Highway 85—and the insurer delayed payment or denied the bill without a reasonable medical reason, we use those records to show the claim was valid and the denial was unreasonable.
We may also work with medical experts to establish that your injuries are real and the treatment was necessary, but only if the insurer's stated reason for denial was medical in nature. For example, if the insurer claimed your injury was pre-existing or unrelated to the accident, a physician's review of your records and history can rebut that. The goal is always to prove not that medicine was mishandled, but that the insurer mishandled its job of reviewing and paying a legitimate claim.
Official Fountain hospital, report, crash-record, and court links →
Examples of What Bad Faith Claims Are Worth
- The unpaid or underpaid benefit itself—the money the insurer should have paid under the policy
- Interest on the delayed payment, accruing from the date the benefit should have been paid
- Emotional distress, including anxiety, frustration, and financial hardship caused by the insurer's conduct
- Punitive damages, if the insurer's bad faith was willful, reckless, or grossly negligent
- Attorney fees and costs of litigation, recoverable under Colorado law in certain bad faith cases
- Any consequential damages, such as credit card debt or collection accounts that resulted from the delayed payment
These claims are tried in El Paso County Combined Courts, where juries have shown willingness to hold insurers accountable for bad faith conduct.
What clients say about McCormick & Murphy
Real outcomes and reviews. Check Google reviews for the office that serves Fountain — and read client testimonials.
A passenger suffered traumatic brain, neck, and back injuries in a Colorado Springs intersection collision. After the carrier refused a fair number, a jury awarded $295,000 including interest and costs.
El Paso County jury verdict
Prior results do not guarantee a similar outcome. Every case depends on its facts, coverage, venue, and evidence.
Fountain Insurance bad faith FAQ
What does bad faith mean in an insurance claim?
Bad faith can occur when an insurer fails to handle your first-party claim fairly and in good faith. Colorado law requires insurers to investigate promptly, communicate clearly, and make coverage decisions based on the policy language and facts. Bad faith can involve unreasonable delay, denial without proper investigation, misrepresenting the policy, or failing to explain the reason for denying a benefit you believe you are entitled to receive.
How long do I have to file a bad faith lawsuit in Colorado?
Deadlines depend on the type of insurance (health, auto, homeowners), the specific claim, and whether you have filed a complaint with the Colorado Division of Insurance. Some claims may be subject to the policy's own deadlines, while others follow Colorado's statute of limitations. The insurer's conduct and delay can affect when your clock starts running. You should have your policy and complete claim timeline reviewed right away to protect your rights.
What if the insurer denied my underinsured motorist (UIM) claim?
UIM coverage protects you when an at-fault driver's liability insurance is insufficient to cover your injuries. An insurer must evaluate your UIM claim fairly, based on your medical evidence and policy limits. If the insurer unreasonably denies or delays your UIM claim without proper investigation, that may be bad faith. We analyze the denial letter, medical records submitted, the insurer's investigation, and the policy language to determine whether the denial was justified.
What evidence do I need to prove bad faith?
You need to show that (1) you had valid insurance coverage and submitted a proper claim, (2) the claim fell within the policy's covered benefits, (3) the insurer investigated or failed to investigate, (4) the insurer's delay or denial was unreasonable under the circumstances, and (5) you suffered damages as a result. The insurer's internal notes, the timeline of communications, and the stated reason for the denial are critical. We review the policy, claim file, correspondence, medical submissions, and payment records to build your case.
How much does it cost to hire McCormick & Murphy for a bad faith claim?
McCormick & Murphy handles injury and bad faith claims on a contingency fee basis. That means the firm only earns an attorney fee if your case is settled or you win at trial. You do not pay an hourly rate. Advanced case costs, such as expert fees or court filing fees, are separate and typically covered by the firm. Discuss the specific terms with the attorney during your initial consultation.
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