How Corporate Policies Drive Insurance Bad Faith Behavior in Colorado

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You know that sinking feeling, right? When your insurance company denies a claim you thought was a slam dunk? Or when they drag their feet for months, making you jump through endless hoops while your bills just keep piling up? Here’s something that might surprise you: it’s often not just bad luck or a grumpy adjuster having a rough day. Many times, these frustrating experiences are the direct result of corporate policies designed to maximize profits… at your expense.

I’ve been watching this play out for years, and honestly, it’s infuriating. Insurance companies have turned claim denial and delay into an art form, backed by sophisticated corporate strategies that would make your head spin. The worst part? It’s all perfectly legal until it crosses that very specific line into “bad faith” territory.

So, let’s peek behind the scenes on how these corporate policies actually work here in Colorado, why they exist, and most importantly, what you can do when you find yourself caught in their sticky web.

What Insurance Bad Faith Really Looks Like

Before we dig into the corporate machinery behind bad faith, let’s get clear on what we’re actually talking about. Insurance bad faith isn’t just slow service or a denied claim – it’s when an insurance company fails to deal with you fairly and in good faith. Plain and simple.

The Basic Promise Insurance Companies Make

When you pay your premiums, you’re entering into a contract. But it’s not just any contract. It comes with an unspoken promise, what lawyers call an “implied covenant of good faith and fair dealing.” Basically, your insurance company promises to:

Investigate your claim thoroughly and quickly.
Talk to you honestly about what’s going on.
Apply your policy terms fairly and consistently.
Not put their profits ahead of your legitimate claim.

Sounds super reasonable, right? Well, that’s where those corporate policies step in and make things a whole lot more complicated.

Common Bad Faith Behaviors You Might Recognize

I bet you’ve experienced at least one of these if you’ve ever dealt with a major insurance claim:

The Endless Documentation Loop: They ask for one document, then another, then another. Each time, they act like this new piece of paperwork is the final thing they need. Spoiler alert: it never is. It’s like they’re playing “fetch,” but you’re the one fetching.
The Lowball Settlement Offer: They offer you a fraction of what your claim is actually worth, hoping you’ll just take it rather than fight. When you push back, suddenly they need to “investigate further.” Classic move.
The Mysterious Delay: Your adjuster goes radio silent for weeks. You call, you email, you wait. When you finally reach someone, they claim they’re “still reviewing” your file or waiting for some expert opinion that never seems to arrive.
The Creative Interpretation: They dig up obscure policy language to deny coverage for something that’s clearly covered under normal circumstances. It’s like they’re lawyers trying to find loopholes in their own contracts.

These aren’t accidents, my friend. They’re features, not bugs, of many corporate claim-handling systems.

The Corporate Playbook: How Policies Create Bad Faith

Here’s where things get really interesting – and honestly, pretty disturbing. Most insurance bad faith doesn’t happen because individual adjusters wake up wanting to ruin your day. Nope. It happens because corporate policies actually incentivize, and sometimes even mandate, these behaviors.

Profit-Maximizing Claim Guidelines

Insurance companies are businesses, and like all businesses, they want to maximize profits. The easiest way to do that? Pay out less in claims. So, they create internal guidelines that sound reasonable on paper but lead to truly terrible outcomes for policyholders.

The Three D’s Strategy: Delay, Deny, Defend. This isn’t just a conspiracy theory – it’s been documented in court cases and internal company documents. The idea is simple: delay claims as long as possible, deny them when you can find any excuse, and then defend your position aggressively even when you’re wrong. Why does this work? Because most people will eventually give up or accept a lowball settlement rather than fight for years. It’s a numbers game, and the insurance companies have run the math.
Performance Metrics That Reward Bad Behavior: Many insurance companies evaluate their adjusters based on how much money they save the company, not how fairly they treat customers. I’ve seen cases where adjusters get bonuses for keeping claim payouts below certain thresholds. Imagine you’re an adjuster whose performance review depends on saving your company money. You’ve got a legitimate claim on your desk that should probably be paid in full. But if you pay it, your numbers look bad. If you deny it or lowball the settlement, you look like a star employee. What do you think happens?

The Technology Factor

Modern insurance companies use sophisticated software to evaluate claims, and here’s where things get really problematic. These systems often prioritize cost savings over fairness.

Automated Denial Systems: Some companies use computer programs that automatically flag claims for denial based on certain criteria. The problem? These systems often don’t account for the unique circumstances of your situation. You’re just a data point.
Valuation Software Manipulation: You know those estimates they give you for car repairs or property damage? They often come from software that can be tweaked to produce lower valuations. The company can adjust the parameters to consistently undervalue claims. It’s like the house always wins at the casino.
Data Mining for Denial Reasons: Insurance companies maintain massive databases of policy language, court decisions, and claim histories. They use this data to find creative reasons to deny claims that would have been approved without question in the past. It’s like they have a super-powered search engine just for finding ways to say “no.”

Corporate Culture and Training

The most insidious part of this whole system is how companies create cultures that normalize bad faith behavior. New employees are often trained to think of policyholders as potential fraudsters rather than customers who’ve paid for protection.

Us vs. Them Mentality: Many insurance companies train their staff to view every claim with suspicion. The assumption is that you’re trying to cheat them, not that you’re a paying customer who deserves fair treatment.
Euphemistic Language: They don’t call it “delaying claims” – they call it “thorough investigation.” They don’t “deny valid claims” – they “protect against fraud.” This language makes employees feel good about practices that harm policyholders. It’s a twisted kind of internal marketing.
Incentive Structures: Beyond individual performance metrics, entire departments and regional offices compete based on their “loss ratios” (how much they pay out vs. how much they take in). The offices that pay out the least get recognition and resources. It’s like an internal game show where the prize is paying you less.

How Colorado Law Addresses Insurance Bad Faith

Now, for some good news! Colorado has some pretty good laws protecting consumers from insurance bad faith. Understanding them can really help you recognize when you’re being mistreated.

Colorado’s Bad Faith Standards

Colorado has specific laws, like Statutes § 10-3-1115 and § 10-3-1116, that spell out exactly when an insurance company’s “aggressive business practices” cross the line into illegal bad faith. The key is whether their conduct is “unreasonable” under the circumstances.

First-Party Bad Faith: This is when your own insurance company treats you badly. Maybe your homeowner’s insurance won’t pay for storm damage, or your health insurer keeps denying necessary medical treatments.
Third-Party Bad Faith: This happens when someone else’s insurance company (like the other driver’s auto insurer after an accident) refuses to settle your claim reasonably.

What Makes Conduct “Unreasonable”?

Colorado courts look at several factors to determine if an insurance company acted in bad faith:

Did they investigate your claim adequately?
Did they have a reasonable basis for denying coverage?
How long did they take to make decisions?
Did they talk to you honestly and quickly?
Were their settlement offers reasonable given the evidence?

The tricky part is that insurance companies know these standards inside and out, so they design their policies to stay just barely on the legal side of the line. It’s a tightrope walk for them, and you’re the one below.

The Burden of Proof Challenge

Here’s one of the biggest headaches with bad faith law in Colorado: you have to prove the insurance company acted unreasonably. That sounds simple, but it’s actually pretty difficult when companies have teams of lawyers and carefully documented procedures designed to make their conduct look perfectly reasonable.

You can’t just show that they denied your claim or offered you less money than you wanted. You have to demonstrate that no reasonable insurance company would have acted the way they did under the circumstances. It’s like trying to prove someone meant to trip you, not just that they stumbled.

Examples of Corporate Policies in Action

Let me share some situations.

The Homeowner’s Hailstorm Nightmare

Sarah’s house was damaged in a severe hailstorm (yes, we get those in Colorado, and they can be brutal!). Her insurance company sent out an adjuster who spent about 20 minutes looking at the roof and wrote up an estimate for minor repairs.

Sarah knew the damage was more extensive, so she got her own contractor’s estimate. It was three times higher than the insurance company’s figure. When she submitted it, the insurance company said they needed to send out a “specialist” to review the damage.

Three months later, no specialist had shown up. When Sarah called, they said the specialist was “backed up” but would get there soon. Meanwhile, the damage was getting worse due to weather exposure.

What was really happening? The insurance company had a corporate policy of automatically challenging any contractor estimate that exceeded their adjuster’s assessment by more than a certain percentage. The “specialist” wasn’t backed up – the company was just hoping Sarah would get frustrated and accept their lowball offer. It was a classic delay tactic.

The Car Accident Runaround

Mike was rear-ended at a red light. The other driver admitted fault, and the police report was clear. Mike’s car was totaled, and he had some neck and back injuries that required physical therapy.

The other driver’s insurance company initially seemed cooperative. They accepted liability and said they’d handle everything. But then the delays started.

First, they needed Mike to get multiple estimates for his car’s value. Then they wanted him to see their preferred doctor for a “second opinion” on his injuries. When Mike’s physical therapist recommended additional treatment, they said they needed to review his medical records going back five years to make sure his injuries weren’t pre-existing.

Each request seemed reasonable in isolation, but together they created a months-long process that should have taken weeks. Mike was without a car, dealing with ongoing pain, and getting increasingly frustrated.

The insurance company’s corporate policy was to use these delay tactics on any claim over a certain dollar amount. Their internal studies showed that claimants who had to wait more than six months were 40% more likely to accept reduced settlements. Pretty sneaky, huh?

The Disability Claim Shell Game

Jennifer had been paying for disability insurance through her employer for years. When a chronic illness made it impossible for her to continue working, she filed a claim.

The insurance company initially approved her claim but then began a series of “routine reviews” every few months. Each review required Jennifer to submit extensive medical documentation, undergo independent medical exams, and sometimes even hire private investigators to observe her daily activities.

After two years of this, they suddenly terminated her benefits, claiming her condition had improved enough for her to return to work. Their evidence? A grainy photo of Jennifer carrying groceries from her car to her house, which they said proved she could perform physical labor.

What Jennifer didn’t know was that the insurance company had a corporate policy of intensively reviewing all disability claims that lasted more than 18 months. They had calculated that the cost of these reviews and investigations was less than the money they saved by finding reasons to terminate long-term claims. It was a clear numbers game.

The Economics Behind Bad Faith Policies

To really understand why insurance companies engage in bad faith behavior, you need to understand the economics. It’s not personal – it’s just business. Cold, calculated business.

The Profit Equation

Insurance companies make money in two big ways: collecting premiums and investing the money they don’t pay out in claims. The longer they can hold onto your money, the more they can earn from investments. And every dollar they don’t pay in claims goes straight to their bottom line. Cha-ching for them.

Let’s say an insurance company has 10,000 claims worth $1,000 each. If they can find ways to deny 10% of those claims and reduce another 20% by half, they save $3 million. Even if some of those policyholders sue and win, the company might only end up paying an extra $500,000 in legal costs and penalties. That’s still a $2.5 million profit from bad faith behavior. It’s an ugly calculation, but it’s one they make.

The Litigation Risk Calculation

Insurance companies employ armies of actuaries (think super-smart mathematicians) who calculate the likelihood that policyholders will sue over denied or underpaid claims. The math is depressing but straightforward:

Most policyholders won’t sue at all.
Of those who do sue, many will settle for less than their claim was worth.
Even when policyholders win, the company has had years to invest the money they should have paid initially.

The Frustration Factor: Companies know that dealing with claim disputes is emotionally and financially draining for individuals. They have entire departments dedicated to this process, while you’re juggling it with work, family, and everything else in your life. They’re betting that you’ll eventually give up or accept a compromise just to move on with your life. And unfortunately, they’re often right.

Regulatory “Fines as a Cost of Doing Business”

Here’s something most people don’t realize: insurance companies often factor regulatory penalties into their business models. They know that state insurance commissioners might fine them for bad faith practices, but these fines are often much smaller than the profits they make from those same practices. It’s like a parking ticket for illegal parking that makes you a fortune.

In Colorado, the Division of Insurance can investigate complaints and impose penalties, but the process is slow and the penalties are often modest compared to the money companies save through bad faith tactics.

How Corporate Structure Enables Bad Faith

The way insurance companies are organized makes bad faith behavior almost inevitable. It’s not that everyone who works for these companies is evil – it’s that the system creates incentives and pressures that lead to bad outcomes for policyholders.

The Separation of Decision-Making

In most large insurance companies, the people who interact with you (customer service reps, adjusters) don’t have the authority to make meaningful decisions about your claim. They’re following scripts and procedures created by executives who never talk to policyholders.

Regional Profit Centers: Many insurance companies organize their operations into regional profit centers. Each region competes with others based on their loss ratios and profitability. This creates pressure to deny or reduce claims even when they’re clearly valid.
Quarterly Earnings Pressure: Public insurance companies face intense pressure to meet quarterly earnings expectations. When claims are higher than expected in a given quarter, there’s enormous pressure to find ways to reduce payouts quickly. It’s all about making Wall Street happy, not you.

The Role of Reinsurance

Most insurance companies don’t actually bear all the risk for the policies they write. They buy “reinsurance” from other companies to spread the risk. This can create some weird incentives.

Sometimes, insurance companies have more incentive to fight claims aggressively because they’re not ultimately paying for them anyway – their reinsurer is. Other times, reinsurance agreements include clauses that penalize the primary insurer for paying claims too quickly or for too much money. It’s a complex dance, and you’re usually not invited to the party.

Corporate Legal Strategies

Insurance companies maintain large legal departments whose job is to find ways to deny claims legally. These lawyers don’t just defend against lawsuits – they proactively look for policy language and legal theories that can be used to avoid paying claims.

Policy Language Engineering: Insurance companies spend millions of dollars crafting policy language that sounds like it provides broad coverage but actually contains numerous exclusions and limitations. It’s like a magic trick where the fine print disappears.
Litigation as a Business Strategy: Some companies have calculated that it’s cheaper to fight almost every significant claim in court rather than pay them voluntarily. They know that many policyholders can’t afford to litigate, and even those who can will often settle for less than their claim is worth.

Red Flags: Recognizing Corporate Bad Faith Policies in Action

Now that you understand how corporate policies drive bad faith behavior, let’s talk about how to recognize when you’re experiencing it. These red flags don’t necessarily prove bad faith, but they should definitely put you on alert.

Communication Patterns That Signal Trouble

The Rotating Cast of Characters: If you find yourself explaining your situation to a different person every time you call, that’s often a deliberate strategy. Companies know that having to restart the conversation each time is frustrating and time-consuming. It’s like being stuck in a customer service Groundhog Day.
The Vanishing Adjuster: Your adjuster was responsive initially but has now disappeared. Calls go to voicemail, emails get delayed responses, and when you do hear back, they claim to be “still investigating.”
Form Letter Responses: You’re getting letters that clearly weren’t written for your specific situation. They reference the wrong dates, policy numbers, or claim details. It shows they’re not paying attention, or worse, they don’t care.

Procedural Red Flags

Escalating Documentation Requests: They keep asking for more paperwork, and each request seems designed to be difficult or expensive to fulfill. Medical records from 10 years ago, receipts for items you threw away years ago, expert opinions on obvious facts – anything to make you give up.
The Moving Goalpost: Every time you provide what they asked for, they come up with a new requirement. It feels like you’re chasing a target that keeps moving further away.
Unreasonable Deadlines: They give you very short deadlines to provide information while taking months to respond to your submissions. It’s a double standard, pure and simple.

Financial Red Flags

Lowball Offers with Pressure: They make an offer that’s obviously too low and then pressure you to accept it quickly. “This offer is only good for 10 days” or “If you don’t accept this, we’ll have to investigate further.” Don’t fall for it.
Partial Payments with Strings: They offer to pay part of your claim immediately if you’ll sign a release for the entire claim. This is almost always a bad deal for you. Read the fine print!
Settlement Mills: They offer quick settlements for amounts that seem reasonable until you realize they’re not accounting for future medical bills, lost wages, or other damages you’re entitled to.

The Human Cost of Corporate Bad Faith Policies

Behind all these corporate strategies and profit calculations are real people dealing with real problems. The human cost of insurance bad faith is enormous and often overlooked.

Financial Devastation

When insurance companies delay or deny legitimate claims, people’s lives can fall apart. I’ve seen families lose their homes because their homeowner’s insurance wouldn’t pay for fire damage. I’ve watched people declare bankruptcy because their health insurance company found creative ways to deny coverage for expensive treatments.

The Domino Effect: When you can’t get your insurance claim paid, it affects everything else in your life. You can’t repair your car, so you can’t get to work reliably. You can’t fix your roof, so the damage gets worse and more expensive. You can’t pay for medical treatment, so your health deteriorates. One problem quickly turns into ten.
Credit and Financial Ruin: Many people end up going into debt or damaging their credit while fighting insurance companies. They have to pay out of pocket for things their insurance should cover, often borrowing money or using credit cards they can’t afford to pay back.

Emotional and Physical Toll

The stress of fighting an insurance company while dealing with whatever crisis led to your claim in the first place is overwhelming. I’ve had clients develop anxiety disorders, depression, and stress-related physical symptoms from prolonged insurance disputes. It’s a heavy burden.

The Gaslighting Effect: Insurance companies are very good at making you question whether your claim is really valid. They use their expertise and authority to make you feel like you’re being unreasonable or asking for something you don’t deserve. Don’t let them mess with your head.
Relationship Strain: These disputes put enormous stress on marriages and families. Money problems are already a leading cause of relationship conflict, and insurance bad faith just makes everything worse.

When insurance companies routinely engage in bad faith practices, it undermines the entire concept of insurance. People lose faith in a system that’s supposed to provide security and peace of mind.

Underinsurance: When people see how insurance companies treat claims, they sometimes respond by buying less coverage to save money. This leaves them even more vulnerable when disasters strike.
Economic Inefficiency: All the time and money spent fighting over legitimate claims is economically wasteful. Those resources could be used productively instead of being consumed by unnecessary disputes.

Fighting Back: Your Options When Facing Corporate Bad Faith

Okay, so we’ve established that corporate policies often drive insurance bad faith behavior, and it’s a serious problem with real consequences. But what can you do about it when you’re caught in this system?

Document Everything

The most important thing you can do is create a detailed record of every single interaction with your insurance company. This serves two purposes: it helps you stay organized, and it provides evidence if you need to take legal action.

Keep a Claim Journal: Write down the date, time, and details of every phone call, email, and letter. Include the name of the person you spoke with and what they told you. This might seem excessive, but it’s incredibly valuable if things go south.
Save All Communications: Don’t throw away anything the insurance company sends you, even if it seems unimportant. Sometimes those routine form letters contain important deadlines or admissions.
Get Everything in Writing: When an adjuster or customer service rep tells you something important over the phone, follow up with an email confirming what they said. “Just to make sure I understood correctly, you said that…” This locks them in.

Know Your Rights Under Colorado Law

Colorado has some strong consumer protection laws, but you need to know about them to use them effectively.

The Colorado Consumer Protection Act: This law prohibits deceptive trade practices, including some types of insurance bad faith. Violations can result in penalties and attorney fees.
Statutory Interest on Overdue Claims: Colorado law requires insurance companies to pay interest on claims that aren’t paid within certain time limits. The interest rate is often higher than what you’d earn in a savings account. It’s a small win, but it adds up.
Bad Faith Damages: If you can prove bad faith, you might be entitled to more than just your original claim amount. Colorado allows recovery of consequential damages (things that happened because of the delay/denial), attorney fees, and sometimes even punitive damages (to punish the company for particularly bad behavior).

When to Involve the Colorado Division of Insurance

The Colorado Division of Insurance investigates consumer complaints against insurance companies. Filing a complaint won’t solve your problem immediately, but it can be helpful in several ways.

Creating an Official Record: Your complaint becomes part of the insurance company’s regulatory file. If they have too many complaints, they might face increased scrutiny or penalties.
Getting Attention: Insurance companies often take complaints more seriously when they come through the Division of Insurance rather than directly from consumers.
Finding Patterns: If multiple consumers complain about the same practices, the Division might investigate the company’s policies more broadly.

You can file a complaint online at the Division’s website, and it’s free. Just don’t expect immediate results – regulatory investigations take time. Think of it as planting a seed.

The Role of Legal Representation

I’ll be honest with you: fighting an insurance company on your own is really difficult. They have teams of lawyers, adjusters, and experts working on their side. You’re dealing with this while also trying to recover from whatever event led to your claim in the first place. It’s an unfair fight.

When to Consider Hiring an Attorney: If your claim is worth more than a few thousand dollars and the insurance company is being unreasonable, it’s worth at least consulting with an attorney who specializes in insurance bad faith cases.
At McCormick & Murphy P.C., we’ve been handling insurance bad faith cases since 1995. We work on a contingent fee basis for most personal injury and bad faith claims, which means you don’t pay attorney fees unless we recover money for you. No upfront costs, no surprises.
What an Attorney Can Do: An experienced bad faith attorney knows how to investigate insurance company practices, gather evidence of unreasonable conduct, and present your case effectively. We also know how to calculate the full value of your damages, including things you might not have considered, like lost wages, pain and suffering, or future medical bills.
The Investigation Process: When we take on a bad faith case, we often discover that the insurance company’s conduct was even worse than the client realized. We can subpoena internal documents, depose company employees, and uncover the corporate policies that led to the bad faith behavior. We pull back their curtain.

Building Your Case

Whether you’re handling the situation yourself or working with an attorney, there are specific things you can do to strengthen your position.

Get Independent Evaluations: If the insurance company’s estimate seems too low, get your own appraisal or expert opinion. This is especially important for property damage claims and personal injury cases. Don’t just take their word for it.
Understand Your Policy: I know insurance policies are boring and hard to read, but you need to understand what coverage you’re entitled to. Don’t just take the insurance company’s word for what your policy says. Get a second opinion if you’re unsure.
Calculate Your Full Damages: Make sure you’re asking for compensation for everything you’re entitled to, not just the obvious losses. This might include lost wages, rental car expenses, additional living expenses, or future medical costs. Don’t leave money on the table.

How to Protect Yourself from Corporate Bad Faith Policies

While you can’t completely avoid the risk of insurance bad faith, there are things you can do to minimize your vulnerability and improve your chances of fair treatment.

Choosing the Right Insurance Company

Not all insurance companies are equally bad when it comes to claim handling. Some have better reputations and corporate cultures than others.

Research Complaint Ratios: The Colorado Division of Insurance publishes data on complaint ratios for different insurance companies. This tells you how many complaints they receive relative to their market share. It’s like checking Yelp reviews for insurance companies.
Check Financial Ratings: Companies that are financially stressed are more likely to engage in aggressive claim practices. Stick with insurers that have strong financial ratings from agencies like A.M. Best or Standard & Poor’s. You want a company that’s financially stable, not one struggling to stay afloat.
Read Reviews Carefully: Online reviews can be helpful, but focus on reviews that specifically mention claim experiences rather than just pricing or customer service for routine matters.

Policy Selection Strategies

The specific policy you choose can make a big difference in how you’re treated when you need to file a claim.

Avoid the Cheapest Options: Insurance policies that seem too good to be true usually are. Very cheap policies often have extensive exclusions or are offered by companies with poor claim-handling practices. You get what you pay for.
Understand Deductibles and Limits: Higher deductibles might save you money on premiums, but they also mean you’ll have to pay more out of pocket when you have a claim. Make sure you can afford your deductibles.
Consider Umbrella Policies: Umbrella policies provide additional liability coverage and are often handled by different departments within insurance companies. They can provide extra protection and sometimes better service.

Maintaining Good Records

Good record-keeping isn’t just important after you file a claim – it’s important from the day you buy your policy.

Document Your Property: Take photos and videos of your home, car, and valuable possessions regularly. Store these records somewhere safe, preferably off-site or in the cloud. Think of it as your personal inventory list.
Keep Policy Documents Organized: Make sure you know where your policy documents are and that they’re up to date. Review your policies annually to make sure your coverage still meets your needs.
Maintain Communication Records: Even for routine interactions with your insurance company, keep records of what was discussed and when.

The Future of Insurance Bad Faith in Colorado

Looking ahead, there are several trends that could affect how insurance bad faith plays out in Colorado over the next few years.

Technological Changes

Insurance companies are increasingly using artificial intelligence and machine learning to evaluate claims. This could go either way for consumers.

Potential Benefits: AI could make claim processing faster and more consistent. It might also reduce human bias in claim evaluation.
Potential Problems: AI systems can perpetuate or amplify existing biases in claim handling. They might also make it harder for consumers to understand why their claims were denied or how decisions were made.
The Black Box Problem: When decisions are made by complex algorithms, it becomes much harder to prove that an insurance company acted unreasonably. How do you challenge a computer program’s logic? It’s like arguing with a calculator.

Regulatory Developments

Colorado lawmakers and regulators are paying more attention to insurance bad faith issues, partly in response to consumer complaints and partly due to high-profile cases.

Potential Legislative Changes: There’s been discussion about strengthening Colorado’s bad faith laws and increasing penalties for insurance companies that engage in systematic bad faith practices. Fingers crossed!
Regulatory Technology: The Division of Insurance is also using new technology to identify patterns in consumer complaints and insurance company behavior. This could lead to more proactive enforcement actions.

Climate Change Impacts

Colorado is experiencing more frequent and severe weather events, which means more insurance claims. This could exacerbate bad faith problems as companies look for ways to manage increased claim costs.

Increased Scrutiny: Insurance companies might become more aggressive about investigating weather-related claims, looking for reasons to deny coverage or reduce payouts.
Policy Changes: Companies might also change their policies to exclude or limit coverage for certain types of weather-related damage. Be sure to read your renewal notices carefully!

Working with McCormick & Murphy on Bad Faith Cases

If you’re dealing with insurance bad faith in Colorado, you don’t have to handle it alone. At McCormick & Murphy P.C., we’ve been fighting insurance companies on behalf of Colorado consumers for nearly three decades.

Our Approach to Bad Faith Cases

We understand that insurance bad faith cases aren’t just about money – they’re about getting fair treatment and holding companies accountable for their conduct.

Thorough Investigation: We dig deep into insurance company practices, often uncovering evidence of systematic bad faith that goes beyond your individual case.
Aggressive Advocacy: Insurance companies respect strength. We’re not afraid to take cases to trial when companies won’t offer fair settlements. We’ll fight for you.
Personal Attention: Unlike some large firms that treat clients like case numbers, we provide personal attention and keep you informed throughout the process. You’re a person, not a file.

What to Expect When Working with Us

Free Consultation: We offer free consultations for potential bad faith cases. We’ll review your situation and give you an honest assessment of your options. No pressure, just information.
Contingent Fee Arrangement: For most bad faith cases, we work on a contingent fee basis. You don’t pay attorney fees unless we recover money for you.
Complete Representation: We handle all aspects of your case, from investigating the insurance company’s conduct to negotiating settlements or trying cases in court. We’ve got your back.

You can reach us at (719) 800-9407 or visit our office at 929 W Colorado Ave, Colorado Springs, CO 80905. We’re here to help Colorado consumers get the fair treatment they deserve from their insurance companies.

Taking Action: Your Next Steps

If you think you’re experiencing insurance bad faith, don’t wait to take action. Insurance companies count on people giving up or accepting unfair treatment, but you have options.

Immediate Steps You Can Take

Stop Accepting Delay Tactics: If your insurance company keeps asking for more time or more documentation without good reason, push back. Ask for specific deadlines and explanations. Don’t let them string you along.
Get Everything in Writing: Stop accepting important communications over the phone. Insist that decisions and explanations be provided in writing. Email is your friend here.
Consider Filing a Complaint: The Colorado Division of Insurance complaint process is free and can sometimes prompt insurance companies to take action on stalled claims.

When to Seek Legal Help

Don’t wait until your situation becomes desperate to seek legal advice. Early intervention can often prevent bad faith situations from getting worse.

Significant Claims: If your claim is worth more than $10,000, it’s probably worth consulting with an attorney, especially if the insurance company is being unreasonable.
Complex Situations: Some types of claims (like disability insurance or complex property damage) are particularly prone to bad faith tactics. Getting legal advice early can help you avoid common traps.
Pattern of Bad Conduct: If you’re seeing multiple red flags or if the insurance company’s conduct seems particularly egregious, don’t try to handle it alone.

Building Your Support Network

Dealing with insurance bad faith can be isolating, but you’re not alone. There are resources and people who can help.

Document Support: Ask family members or friends to help you stay organized and keep track of deadlines and communications. A second set of eyes can be really helpful.
Professional Support: Consider working with public adjusters, contractors, or medical professionals who have experience dealing with insurance companies. They can be invaluable allies.
Legal Support: Even if you’re not ready to hire an attorney, getting a consultation can help you understand your rights and options. Knowledge is power.

The Bottom Line on Corporate Insurance Policies

Here’s what I want you to remember from all of this: insurance bad faith isn’t usually personal, but it is intentional. Corporate policies create systems that prioritize profits over fair treatment, and individual employees are pressured to implement these policies even when they know it’s wrong.

Understanding this doesn’t make the experience any less frustrating, but it can help you respond more effectively. You’re not dealing with isolated mistakes or personality conflicts – you’re dealing with systematic corporate behavior designed to maximize profits at your expense.

The good news is that Colorado law provides meaningful remedies for insurance bad faith, and there are experienced attorneys who know how to hold insurance companies accountable for their conduct.

Don’t let corporate policies designed to wear you down succeed. You paid your premiums in good faith, and you deserve fair treatment when you need to use your coverage. Whether you handle the situation yourself or work with an attorney, the most important thing is to take action and not accept unfair treatment.

If you’re dealing with insurance bad faith in Colorado and want to discuss your options, we’re here to help. Contact McCormick & Murphy P.C. at (719) 800-9407 for a free consultation. We’ve been fighting insurance companies for Colorado consumers since 1995, and we know how to get results.

Remember: insurance companies have teams of professionals working to protect their interests. You deserve to have experienced advocates working to protect yours.