Colorado Springs Insurance Bad Faith Lawyer

You paid your premiums on time. Every month, every year. You trusted your insurance company to be there when you needed them. Then something happened — an accident, an injury, damage to your property — and suddenly the company you paid all those years is stalling. Making excuses. Offering a fraction of what you need. Treating you like a problem instead of a policyholder.

That is not just frustrating. In Colorado, it may be illegal.

Insurance companies have a legal duty to act in good faith. They are required to investigate your claim promptly, handle it fairly, and pay what they owe under the policy. When they do not — when they delay, deny, or lowball a valid claim — you have legal options. And those options include holding them accountable for more than just the original claim amount.

At McCormick & Murphy – Personal Injury Lawyers in Colorado Springs, we represent policyholders who have been treated unfairly by their own insurance companies. If you are fighting for benefits you paid for and deserve, we are ready to step in.

Call 719-389-0400 to discuss your claim. Our office is located at 929 W Colorado Ave, Colorado Springs, CO 80905.

What Is Insurance Bad Faith?

Insurance bad faith occurs when an insurance company fails to meet its obligations to you, the policyholder. In Colorado, insurers owe you what is called a duty of good faith and fair dealing. That duty requires them to handle your claim honestly, investigate it thoroughly, and pay what is owed under the policy terms without unreasonable delay.

When an insurer violates that duty — by denying a valid claim, dragging out the process, misrepresenting policy language, or offering far less than the claim is worth — that is bad faith. It is not just poor customer service. It is a breach of their legal obligation to you.

Bad faith claims are distinct from ordinary claim disputes. You may disagree with your insurer about how much they owe. That disagreement alone is not bad faith. But when the insurer knows or should know that your claim is valid and chooses to deny it anyway, or when they deliberately stall the process to wear you down, they cross the line.

Common Examples of Insurance Bad Faith

Insurance companies employ a range of tactics to minimize what they pay out. Some of these tactics are subtle. Others are blatant. Recognizing them is the first step toward holding the insurer accountable.

Unreasonable Delays
Your insurer is required to investigate and respond to your claim within a reasonable timeframe. If they take weeks or months to assign an adjuster, schedule inspections, or make a decision — especially without explanation — that delay may be bad faith.

Denial Without Investigation
Some insurers deny claims outright without conducting a meaningful investigation. They may reject your claim based on assumptions, incomplete information, or a cursory review. A proper investigation includes gathering evidence, reviewing documentation, and giving you a fair opportunity to support your claim.

Lowball Settlement Offers
Offering far less than a claim is worth is a common bad faith tactic. The insurer may ignore medical records, repair estimates, or expert opinions that support a higher value. They are counting on you to accept the offer out of frustration or financial desperation.

Misrepresenting Policy Terms
Insurers sometimes tell policyholders that certain damages are not covered when in fact the policy clearly covers them. They may use vague language, point to exclusions that do not apply, or simply hope you will not read the fine print.

Requesting Excessive Documentation
While insurers are entitled to request documentation, some demand an unreasonable volume of paperwork or repeatedly ask for the same documents. The goal is to create obstacles and frustrate you into giving up.

Forcing You to Litigate
Sometimes an insurer knows they owe you money but refuses to pay unless you file a lawsuit. They are betting you will not have the resources or the will to fight. That calculation changes when you have legal representation.

Why Insurers Engage in Bad Faith

Insurance companies are businesses. Their profit depends on collecting premiums and paying out as little as possible in claims. That creates an inherent conflict of interest. You want your claim paid. They want to keep their costs down.

Some insurers train adjusters to minimize payouts, reward employees who deny claims, or use algorithms that flag claims for automatic denial. Others simply bet that most policyholders will not push back. They know the average person does not have the time, money, or knowledge to challenge a denial.

What they do not always account for is a policyholder with an attorney who understands bad faith law. That changes the equation immediately.

What You Can Recover in a Bad Faith Claim

If your insurer has acted in bad faith, you may be entitled to more than just the original claim amount. Colorado law allows you to recover several categories of damages.

Policy Benefits
You are entitled to the full amount owed under your policy. If your insurer denied or underpaid your claim, a bad faith lawsuit seeks to recover those benefits.

Consequential Damages
These are losses that resulted from the insurer’s bad faith conduct. For example, if the delay in payment caused you to miss work, lose your home, or incur additional medical expenses, those damages may be recoverable.

Emotional Distress
Dealing with a bad faith insurer is stressful. The uncertainty, frustration, and betrayal can take a real toll. Colorado courts recognize that emotional distress damages may be appropriate in bad faith cases.

Attorney Fees and Costs
In many bad faith cases, the insurer can be required to pay your attorney fees and litigation costs. This levels the playing field and allows you to pursue your claim without worrying about how to afford legal representation.

Punitive Damages
When an insurer’s conduct is particularly egregious — when they knowingly violated your rights or acted with reckless disregard — Colorado law allows for punitive damages. These are designed to punish the insurer and deter future bad faith conduct. Punitive damages can be substantial.

How a Colorado Springs Bad Faith Attorney Helps

Insurance companies have teams of lawyers, adjusters, and investigators working to protect their interests. You should not face them alone.

An attorney who handles bad faith claims understands how insurers operate and what tactics they use. We know how to document bad faith conduct, build a strong record, and hold the insurer accountable.

We Review Your Policy and Claim
Insurance policies are contracts, and the language matters. We read your policy carefully to determine what coverage you have, what the insurer owes, and whether they have violated their obligations. We also review all correspondence, claim files, and communications with the insurer to identify red flags.

We Gather Evidence of Bad Faith
Proving bad faith requires documentation. We collect records of delays, denials, and lowball offers. We obtain your claim file from the insurer, which often reveals internal communications showing what they knew and when they knew it. We also gather expert opinions, medical records, repair estimates, and other evidence that supports the value of your claim.

We Communicate on Your Behalf
Once we are involved, the insurer knows it is being watched. We handle all communication with the insurance company, ensuring that your rights are protected and that nothing you say is used against you.

We Negotiate From a Position of Strength
Insurers often take policyholders more seriously when they have legal representation. We negotiate for the full value of your claim plus any damages caused by the bad faith conduct. If the insurer continues to stonewall, we are prepared to file a lawsuit.

We Litigate When Necessary
Some insurers will not pay what they owe until they are facing a jury. We are not afraid to take a bad faith case to trial. Our goal is to get you what you are owed, whether that happens at the negotiating table or in the courtroom.

What to Do If You Suspect Bad Faith

If you believe your insurance company is acting in bad faith, there are steps you can take to protect your rights.

Document Everything
Keep copies of all communications with your insurer. Save emails, letters, claim forms, and notes from phone calls. Write down the names of adjusters, the dates of conversations, and what was said. This documentation becomes critical evidence.

Do Not Accept the First Offer
If the insurer makes a lowball offer, do not feel pressured to accept it. Once you settle, you typically waive your right to pursue additional damages. Speak with an attorney before signing anything.

Request Your Claim File
Colorado law gives you the right to obtain your claim file from the insurer. This file contains all the documents, reports, and internal notes related to your claim. It can reveal whether the insurer conducted a proper investigation and whether they have been acting in bad faith.

Do Not Give a Recorded Statement Without Legal Advice
Insurers sometimes ask for recorded statements that they later use to deny or reduce your claim. Before agreeing to a recorded statement, talk to an attorney. We can advise you on what to say and what to avoid.

Talk to a Bad Faith Attorney
The sooner you involve an attorney, the better. We can assess whether you have a bad faith claim, advise you on next steps, and begin building your case.

Serving Colorado Springs and Surrounding Communities

McCormick & Murphy represents clients throughout the Colorado Springs area. If you live in Briargate, Gleneagle, InterQuest, University Village, Pulpit Rock, Stetson Hills, Banning Lewis Ranch, Falcon, Meridian Ranch, Stratmoor, Stratton Meadows, Security-Widefield, Widefield, Broadmoor, Broadmoor Bluffs, Broadmoor Glen, Cheyenne Meadows, Ivywild, Fort Carson, Star Ranch, Skyway, Old Colorado City, Manitou Springs, Rockrimmon, Mountain Shadows, Oak Valley Ranch, Cedar Heights, Garden of the Gods, Springs Ranch, Wolf Ranch, Woodmen Hills, Cordera, Village Seven, Vista Grande, Wagon Trails, Sundown, University Park, Spring Creek, or Rustic Hills, we are here to help.

Why Choose McCormick & Murphy

Kirk McCormick and Jay Murphy have built their practice around one principle: holding powerful institutions accountable when they harm individuals. Insurance companies count on policyholders being too intimidated or too overwhelmed to fight back. We make sure that does not happen.

We know how insurers think. We know the games they play. And we know how to win.

When you work with us, you are not just another file number. You are someone who paid for protection and deserves to receive it. We take that personally.

You Do Not Owe Them the Benefit of the Doubt

Insurance companies spend millions on advertising to convince you they are on your side. They are not. When it comes time to pay a claim, their priority is their bottom line, not your well-being.

You do not owe them patience. You do not owe them the benefit of the doubt. You owe them nothing but the premiums you already paid — and they owe you a fair, honest, and prompt resolution of your claim.

If they are not delivering on that obligation, it is time to bring in someone who will make them.

Contact a Colorado Springs Insurance Bad Faith Lawyer Today

If your insurance company is delaying, denying, or undervaluing your claim, you have rights. You also have options. And you do not have to navigate this alone.

Call 719-389-0400 to speak with an attorney at McCormick & Murphy. Our office is located at 929 W Colorado Ave, Colorado Springs, CO 80905. You can also visit us online at mccormickmurphy.com.

Your insurer had a responsibility to you. If they failed to meet it, we will hold them accountable.