El Paso County · Insurance bad faith
Monument Insurance Bad Faith Lawyers
Monument insurance bad faith claim? We fight delayed or denied benefits on contingency.
What Is Insurance Bad Faith?
Your insurer has a legal duty to handle your claim fairly and without unreasonable delay. When an insurance company denies your claim, underpays it, or drags out the decision process without a reasonable basis, that conduct may constitute bad faith. In Monument and across El Paso County, policyholders often discover that their own insurer—the company they paid premiums to—has rejected a valid claim or stalled payment for months without a credible reason.
Bad faith cases often involve uninsured or underinsured motorist (UIM) coverage, medical benefits, or property damage claims that the insurer should have covered under the policy terms. We review the policy language, the claim file, and the insurer's communications to identify whether the denial or delay was reasonable or whether it crossed the line into bad faith. Our job is to show that the insurer failed to conduct a fair investigation, ignored evidence, or simply refused to pay without a legitimate basis.
How We Build Your Bad Faith Case
The foundation of any bad faith claim is the policy itself: what it covers, what it excludes, and what the insurer knew about your loss. We obtain the complete claim file through discovery, which includes the insurer's internal notes, reserve evaluations, recorded statements, correspondence, medical records submitted to the insurer, wage loss documentation, and the timeline of every interaction. These documents reveal whether the insurer investigated properly, whether it reasonably considered your evidence, and whether its stated reason for denial or delay makes sense.
We also analyze how the insurer handled similar claims, whether it followed its own underwriting guidelines, and whether it treated your claim differently. If the insurer changed its position mid-handling, denied a claim that appeared clearly covered, or delayed payment while sitting on complete information, those facts matter. The claim-handling timeline—from your initial report to the final denial or payment—is critical evidence of whether the insurer acted in bad faith.
Local investigations may involve Monument Police Department and El Paso County Sheriff’s Office, policies covering Monument 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 cause. Gather and preserve these items:
- Original insurance policy and all endorsements or amendments
- Proof of premium payment and policy active status at time of loss
- Written claim submission, including date submitted to Monument Police Department or El Paso County Sheriff's Office
- All correspondence from the insurer (emails, letters, phone call summaries, denial notices)
- The insurer's written explanation or stated reason for delay, denial, or underpayment
- Medical records, wage loss documentation, repair estimates, or other proof of loss
- Insurer's investigation file, internal notes, and coverage evaluation (obtained through discovery)
- Timeline of all contact attempts with the insurer and responses received
- Recorded statements given to the insurer or investigator
- Payment records showing any amounts paid, partial payments, or zero payment
- Reserve letters or policy limit acknowledgments from the insurer
- Documentation of any harm caused by the delay (additional medical costs, financial hardship, emotional distress)
Preserve all records in their original form and prepare a complete claim-handling timeline for your attorney review.
Medical Records and Causation
In bad faith cases, medical records and billing documents serve a specific purpose: they show the insurer what it knew about your injury, what your doctors said about coverage-related issues, and whether the insurer's investigation was thorough. We work with your medical providers and review their bills, reports, and imaging to document the extent of injury and the reasonableness of treatment. If the insurer received your medical records but ignored them, or if it obtained medical records but failed to apply them correctly to the policy language, that conduct supports a bad faith claim.
We also examine wage loss documentation and other economic losses to prove damages. If the insurer delayed payment of your benefits while you lost income, or if it underpaid your claim knowing the full scope of your loss, the financial harm you suffered becomes part of the case. Medical causation in a bad faith context is not just about whether you were injured—it is about whether the insurer acted unreasonably in evaluating the medical evidence and the covered benefit.
Official Monument hospital, report, crash-record, and court links →
Examples of Damages in Bad Faith Cases
- The full amount of the unpaid or underpaid benefit owed under the policy
- Pre-judgment and post-judgment interest on the denied or delayed payment
- Emotional distress, anxiety, and harm from wrongful denial of coverage
- Attorney fees and costs, which the insurer may be ordered to pay
- Punitive damages in cases where the insurer's conduct was reckless or intentional
El Paso County Combined Courts recognizes bad faith as a violation of the insurance contract and of Colorado law, and allows recovery beyond the policy amount in appropriate cases.
What clients say about McCormick & Murphy
Real outcomes and reviews. Check Google reviews for the office that serves Monument — 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.
Monument Insurance bad faith FAQ
What counts as bad faith under Colorado law?
Bad faith can occur when an insurer fails to investigate a claim fairly, denies or delays payment without a reasonable basis supported by the policy language, or fails to communicate honestly about coverage. Colorado law requires insurers to evaluate first-party claims (like uninsured or underinsured motorist coverage) promptly and in good faith. If an insurer investigates inadequately, ignores evidence, or delays without explanation, you may have a bad faith claim in addition to the underlying coverage claim.
What is the deadline to file a bad faith lawsuit?
Bad faith deadlines depend on the type of claim (uninsured motorist, medical payments, property damage), the policy language, and when you discover the unreasonable conduct. Colorado law does not set a single deadline—instead, the applicable statute of limitations runs from the date of injury or loss. However, some policies or benefit types have shorter notice or claim-filing deadlines. It is critical to preserve your full claim timeline and obtain a case-specific deadline review from an attorney as soon as you suspect bad faith.
Do I have to file a complaint with the Colorado Division of Insurance?
You are not required to file a complaint with the Division of Insurance to pursue a bad faith lawsuit, but doing so can create useful documentation. Filing a complaint does not stop your ability to sue. You can file both a regulatory complaint and a civil bad faith claim. Discuss the timing and strategy with your attorney, as each step becomes part of your evidence record.
How is bad faith different from a coverage dispute?
A coverage dispute is about whether the insurer correctly interpreted the policy and whether the loss is covered. Bad faith is about how the insurer handled the claim—whether they investigated fairly, communicated honestly, and made a decision based on reasonable grounds. You can have both a coverage dispute and a bad faith claim. Bad faith adds claims for damages beyond the benefit amount, including attorney fees, emotional distress, and interest, depending on the facts.
How do you charge for bad faith cases?
McCormick & Murphy handles bad faith and injury claims on a contingency fee basis. This means we earn an attorney fee only if your case is settled or won in court. There is no fee if the case is unsuccessful. Advanced case costs—such as discovery, expert reports, and court filing fees—are separate from the attorney fee and will be discussed with you in writing before you incur them.
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7660 Goddard St Suite 245, Colorado Springs, CO 80920
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