El Paso County · Insurance bad faith
Manitou Springs Insurance Bad Faith Lawyers
Manitou Springs insurance bad faith claim? Free consult. No fee unless we recover.
When Your Insurer Delays or Denies Your Claim
An insurance company has a duty to handle your claim fairly and without unreasonable delay. That obligation applies whether you are seeking uninsured motorist coverage, underinsured motorist coverage, or any first-party benefit listed in your policy. When an insurer ignores that duty—by dragging out an investigation, rejecting a valid claim without sound reason, or offering far less than the policy allows—you have grounds to pursue a bad faith claim. We represent Manitou Springs residents and others throughout El Paso County who believe their insurer has broken faith.
Bad faith is not simply a disagreement over coverage. It is an insurer's conscious disregard for a policyholder's rights. We examine the policy language, the claim you submitted, the investigation the insurer conducted, the communications you received, and the stated reason for any delay or denial. If the evidence shows the insurer acted unreasonably or withheld payment without a legitimate basis, you may recover not only the denied benefit but also damages for the insurer's conduct.
What We Look For in Your Claim File
Discovery in a bad faith case often reveals the insurer's internal thinking. We request the claim file, all correspondence between you and the company, notes from recorded statements, medical records and wage documents you submitted, coverage letters, payment records, and internal evaluations or reserves the insurer made during handling. We also obtain a detailed timeline of every step—when the claim was filed, when the insurer responded, when it asked for more information, and when it finally paid or denied the claim.
This material shows whether the insurer had a reasonable basis for its actions. Unreasonable delays, selective investigation, a failure to follow the policy, or pressure to deny claims to boost profits are hallmarks of bad faith. We also examine whether the insurer's explanation changed over time or contradicted its own file notes, as that inconsistency often demonstrates the company's lack of honest reasoning.
Local investigations may involve Manitou Springs Police Department and El Paso County Sheriff’s Office, policies covering Manitou Springs residents and disputes that may proceed in El Paso County Combined Courts.
Insurance bad faith can occur when an insurer unreasonably delays, denies, or underpays a covered claim without proper investigation or explanation. Gather the following evidence to support your claim:
- Original insurance policy and all policy amendments, endorsements, and declarations pages
- Written proof of claim submission, including date sent and method of delivery
- All correspondence from the insurer, including claim determinations, denial letters, and coverage decisions
- Medical records, bills, and wage statements you submitted with the claim
- Photographs or documentation of the incident (vehicle damage, injury photos, scene photos)
- Recorded statements or interviews given to the insurer's representatives
- Internal insurer documents obtained through discovery: claim file notes, supervisor reviews, reserve evaluations, and coverage analyses
- Communications with the insurer showing delays, requests for information, and responses (emails, letters, phone logs)
- Expert medical or vocational evaluations supporting your injury and damages
- Payment records showing what was paid, when, and what was withheld or denied
- Any independent appraisals, repair estimates, or third-party valuations related to the claim
- Timeline documentation showing the date of loss, claim submission, and all follow-up dates and responses
The stronger your record of the insurer's handling decisions, the clearer the picture of whether the claim was fairly evaluated. Contact us promptly to preserve your rights.
Your Medical Records and the Claim Decision
When you submit medical evidence to support an injury claim or benefit request, the insurer must consider it fairly. Bad faith can occur when an insurer ignores medical records, relies on an outdated examination, or cherry-picks findings to deny a claim that the evidence actually supports. If you were treated at UCHealth Memorial Hospital Central in Colorado Springs or seen by other healthcare providers, we obtain those records and compare them to the insurer's stated reasons for denial or underpayment.
We work with medical professionals to evaluate whether the insurer's decision was reasonable given the clinical facts. If the insurer dismissed credible medical evidence or mischaracterized your condition to justify a lower payment or outright denial, that conduct supports a bad faith claim. The goal is to show that a fair-minded insurer, reviewing the same medical information, would have handled your claim differently.
Official Manitou Springs hospital, report, crash-record, and court links →
Examples of Recovery in a Bad Faith Claim
- The full amount of the denied or underpaid benefit under your policy
- Interest on the wrongfully withheld payment from the date it should have been paid
- Damages for emotional distress, loss of peace of mind, and the stress of financial hardship caused by the delay or denial
- In some cases, punitive damages if the insurer's conduct was especially reckless or malicious
- Your reasonable attorney fees and litigation costs
Claims are resolved by settlement or by judgment at El Paso County Combined Courts, and damages awarded depend on the insurer's conduct and the strength of your evidence.
What clients say about McCormick & Murphy
Real outcomes and reviews. Check Google reviews for the office that serves Manitou Springs — 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.
Manitou Springs Insurance bad faith FAQ
What is the difference between a regular insurance claim dispute and bad faith?
A claim denial or underpayment is a normal dispute if the insurer fairly investigates and applies the policy language. Bad faith can occur when the insurer ignores evidence, fails to investigate, delays unreasonably without justification, or denies a claim it knows is covered. The focus is on the insurer's conduct and reasoning, not just the outcome.
How long do I have to file a bad faith claim in Colorado?
Colorado law sets strict deadlines for bad faith claims. The specific deadline depends on the type of policy, when you discovered the bad faith conduct, and which legal claims you have. Some deadlines run from the date of the denial; others from when you learned of the improper conduct. You must preserve your complete claim timeline and policy documents immediately. Contact us for a case-specific deadline review, as missing a deadline can bar your claim entirely.
What damages can I recover in a bad faith claim?
You can recover the benefits wrongfully withheld or denied, plus interest on those benefits. 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 particularly reckless or malicious. We evaluate your full harm based on the policy, the amount at stake, and the nature of the insurer's misconduct.
How does McCormick & Murphy charge for bad faith cases?
We handle bad faith claims on a contingency fee basis. You pay no attorney fee unless we settle your case or win at trial. If we recover benefits for you, the firm earns a percentage of that recovery as our fee. Any advanced case costs—such as expert fees, court filings, or investigation expenses—are separate and tracked independently. We discuss all costs upfront.
Do I need to file a complaint with the Colorado Division of Insurance first?
No, you do not have to file a regulatory complaint before suing for bad faith. However, a complaint to the Division of Insurance may create a helpful record and can prompt an investigation. Filing a lawsuit does not require a prior complaint, but the timing and nature of your insurer's conduct may matter for certain claims. We advise you on the best strategy for your situation.
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929 W Colorado Ave, Colorado Springs, CO 80905
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