Larimer County · Insurance bad faith
Loveland Insurance Bad Faith Lawyers
We hold Loveland insurers accountable when they delay, deny, or underpay your claim without reasonable basis.
What Is Insurance Bad Faith?
Bad faith can occur when an insurance company fails to evaluate your claim reasonably or refuses to pay a valid benefit. This can mean unreasonable delay, a denial with no factual support, underpayment without explanation, or refusal to investigate. Whether your claim involves uninsured motorist coverage, underinsured motorist coverage, or a first-party benefit, your insurer must act fairly or face liability beyond the policy limit.
In Loveland and Larimer County, we work with clients whose insurers have stalled, mishandled, or rejected legitimate claims. We review the full claim-handling record—policy language, correspondence, internal evaluations, and reserves—to show whether the insurer acted in bad faith. Our goal is to recover the denied benefit plus damages for the breach of the implied covenant of good faith and fair dealing.
How We Prove Bad Faith
We start by obtaining and analyzing the insurance policy, the entire claim file, all correspondence, recorded statements, and internal company documents through discovery. We examine the insurer's investigation file, their stated reasons for delay or denial, any reserve evaluations, and the handling timeline from claim submission through denial or underpayment. This evidence shows whether the company acted on a reasonable basis or whether their conduct was unreasonable and contrary to your interests.
Common proof includes a complete claim-handling timeline showing unexplained delays, medical or wage records that support your claim, coverage letters or denials that contradict policy language, and internal notes revealing an intent to avoid payment. We work with independent adjusters and coverage counsel to challenge the insurer's position. Cases are resolved through negotiation, mediation, or litigation in Larimer County Justice Center when necessary.
Local investigations may involve Loveland Police Department and Larimer County Sheriff’s Office, policies covering Loveland residents and disputes that may proceed in Larimer County Justice Center.
Insurance bad faith cases require documentation of the insurer's handling of your claim. Gather and preserve the following:
- Original insurance policy and all amendments or endorsements
- Your initial claim submission and date received by the insurer
- All correspondence from the insurer, including coverage letters, denial letters, and reservation of rights notices
- Medical records, wage statements, repair estimates, or other documentation you submitted to support your claim
- Recorded statements you gave to the insurer's adjuster or investigator
- Internal insurer documents obtained in discovery (evaluations, reserves, coverage analyses, adjuster notes)
- Payment records showing what was paid, when it was paid, and what was withheld or denied
- Written explanation from the insurer for any delay, denial, or underpayment
- Timeline documenting each contact with the insurer and response times
- Uninsured or underinsured motorist (UM/UIM) correspondence if applicable
- Any denials that were later reversed or amounts later paid after initial refusal
- Evidence of your compliance with policy requirements (notice deadlines, proof of loss submissions, cooperation)
Preserve all documents in their original form. Do not discard or alter any communication from the insurer, even if it appears incomplete or unfavorable.
Medical Records and Benefits
When an insurer denies medical benefits or refuses to approve treatment under uninsured or underinsured motorist coverage, we obtain your medical records from UCHealth Medical Center of the Rockies and other providers to support your claim. We work with your doctors to show the necessity and causation of the medical care. If the insurer's denial contradicts the medical evidence, that strengthens your bad-faith case.
We also gather wage records, lost-income documentation, and expert testimony when needed to support a denied benefits claim. The insurer's duty includes not just processing paperwork but investigating fairly and making decisions based on the evidence, not on a predefined decision to deny. When medical necessity is clear and the insurer still refuses, bad faith damages can include the denied benefits plus consequential harm.
Official Loveland hospital, report, crash-record, and court links →
Examples of What You Can Recover
- The unpaid or underpaid insurance benefit itself—the amount wrongfully denied
- Interest on the delayed or denied payment from the date it should have been paid
- Consequential damages for emotional distress, financial hardship, and harm caused by the wrongful delay or denial
- Punitive damages when the insurer's conduct was particularly unreasonable or reckless
- Attorney fees and court costs if your policy or Colorado law permits recovery
Bad-faith claims are litigated in Larimer County Justice Center and evaluated under Colorado's strict rules governing insurer conduct.
What clients say about McCormick & Murphy
Real outcomes and reviews. Check Google reviews for the office that serves Loveland — and read client testimonials.
After I was hit by a drunk driver with no insurance, my own insurer refused UM benefits. McCormick & Murphy sued for uninsured motorist benefits and bad faith. A jury awarded me over $900,000.
C. O., Denver · UM / bad-faith verdict
Prior results do not guarantee a similar outcome. Every case depends on its facts, coverage, venue, and evidence.
Loveland Insurance bad faith FAQ
What makes an insurer's conduct "bad faith" in Loveland?
Bad faith can occur when an insurer fails to handle your claim fairly and promptly, even though the policy covers your loss. Common examples include denying a claim without a reasonable investigation, delaying payment indefinitely, misrepresenting policy language, or failing to communicate the reason for a denial. The insurer must evaluate first-party claims—like uninsured motorist coverage after a crash on U.S. Highway 34 or Eisenhower Boulevard—with the same care it would give to its own claims. Unreasonable conduct, not mere error or disagreement, is what supports a bad faith claim.
How long do I have to file a bad faith claim against my insurance company?
Colorado law sets deadlines for bad faith claims, but the specific deadline depends on your policy, the type of benefit you're claiming, and what happened. For instance, some policy provisions set their own time limits for filing a claim or providing proof of loss. Bad faith claims themselves typically must be brought within a certain period, but that period can vary based on whether you are pursuing a first-party claim (your own insurer) or a third-party claim. Because deadlines are fact-specific and can be missed easily, you should obtain a case-specific review of your timeline as soon as possible. Contact McCormick & Murphy to discuss your situation and preserve your rights.
What does McCormick & Murphy charge to handle an insurance bad faith case?
McCormick & Murphy handles injury and insurance claims on a contingency fee basis. That means the firm earns an attorney fee only if your case is settled or won. You pay nothing out of pocket for the attorney fee unless you receive a recovery. Advanced case costs—such as filing fees, expert reports, and court costs—are separate from the attorney fee and are typically paid from any settlement or judgment. We discuss all fees and costs clearly before taking your case.
What kind of damages can I recover in a bad faith claim?
If your insurer acted in bad faith, you may recover the benefit that was wrongfully withheld or underpaid, plus damages for the harm caused by that conduct. Damages can include interest on the unpaid benefit, costs of pursuing the claim, and in some cases, emotional distress or reputational harm. The exact damages depend on your policy, the facts, and the extent of the insurer's misconduct. A lawyer can review your claim file and explain what damages may be available in your situation.
Should I continue communicating with my insurer while pursuing a bad faith claim?
Yes, but carefully. You must continue to comply with your policy obligations, such as submitting requested information or cooperating with investigations. However, after filing a lawsuit or after the insurer has denied your claim, any further communications should go through your attorney. Do not sign new statements or agree to modifications of your claim without legal advice. Keep all written communications (letters, emails) so that the complete timeline and the insurer's position are documented for your lawyer and for the record at the Larimer County Justice Center.
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