Insurance Bad Faith

When you pay costly premiums and monthly insurance fees, you expect your insurance carrier to cover you when something bad happens. You expect that your claim will be honored to the extent of your policy, and you should expect these things. Sadly, however, insurance companies sometimes do not honor claims, or they refuse to pay the full amount allowed by your policy.

With long hold times and runaround conversations with customer representatives, dealing with your insurance company on your own can be intolerable and may not yield results. You need an experienced insurance bad faith attorney to help you get the settlement you are owed.

What Is Insurance Bad Faith?

When an insurance company unreasonably denies an insurance claim, it is referred to as insurance bad faith — or insurance companies acting in bad faith. Even if your insurance company isn’t denying your claim, there are other ways in which they may act in bad faith such as:

  • Unreasonable delay of payment
  • Failing to properly investigate a claim
  • Refusal of settlement
  • Unreasonable interpretation of policy agreements
  • Not honoring your claim to the fullest extent of your policy coverage

Each of these situations is cause for taking legal action against your insurance company. If you wish to do so, you should meet with an attorney and discuss your options and the best way to move forward with your claim.

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Insurance Bad Faith and Breach of Contract.

Your insurance policy agreement is a legal contract between you and the insurance company: you agree to pay their premiums and they agree to pay a certain amount of your bill. When the insurance company does not honor a reasonable claim, they are in violation of the terms of the contract and therefore can be held legally accountable for a breach of contract.

The state of Colorado provides legal remedies for breach of insurance contracts through compensatory settlements — you may be eligible for twice the amount of the benefits currently owed to you, depending on the situation and details of your case.

You do not need to prove damages caused by the insurance company’s bad faith. You are only required to prove your provider was unreasonable in the delay or denial of payment.

What Should Be Included in a Notice of Breach?

You should always consult with an insurance bad faith attorney before sending a notice of the breach to your insurance company, but this list is to help you compile the information you will go over with your attorney:

  1. Make sure you properly date the notice plainly and clearly.
  2. Check your contract for a notice clause (i.e. notice provisions) which may stipulate how the notice has to be communicated with your insurance company.
  3. Describe the breach — include as much detail as possible and identify the specific clauses of the contract that have been violated.
  4. Offer a solution — stipulate what you expect to get from the insurance company as restitution for the breach.

Once you have some kind of draft of the above information, an experienced attorney will be able to help you refine your notice to maximize efficiency. If you are unsure about drafting any of this information, your attorney may draft the notice of your behalf and help you go through your insurance contract to identify the exact clauses applicable to your case.

With experience in insurance bad faith and breach of contract, we offer you expert advice and excellent service as your legal counsel. Whatever your situation may be, we believe your claim should be honored to the fullest extent. Put us on your side and will pursue the highest payment possible for your claim. Call today and schedule a free consultation.

Insurance Bad Faith Attorney Serving Lone Tree, Colorado

Is your insurance refusing to pay the full amount of your claim? Are they denying payment that your policy should cover? With the help of an attorney, you can fight the insurance company for a proper settlement. We have the experience to help you fight for the coverage you paid for. Give us a call and schedule a free consultation today.