Insurance Bad Faith

Insurance Bad Faith Lawyers Representing Clients In Denver and Throughout Colorado

Dealing with an insurance company is stressful. Insurance companies are in the business of making money, not paying out claims. No matter how much you pay in premiums, if you pay them on time, or if you’ve never filed a claim; you might still have trouble receiving compensation for a claim. Insurance companies should be held accountable for bad faith practices. Let a Denver insurance bad faith attorney from Mandelaris Law represent you when dealing with insurance companies.

Insurers Are Required to Fulfill Duties

Insurance companies are required to fulfill certain duties for their policyholders. If they fail to do so, they could be acting in bad faith. The most common responsibilities insurers must fulfill for their policyholders include the following:

  • The duty to indemnify: failing to pay a settlement agreement or judgment issued against their policyholder up to the limit of the policy, can be an example of acting in bad faith.
  • The duty to investigate: an insurance company that fails to investigate an incident reported by a policyholder and a valuation violates a duty to investigate. Delaying an investigation could also constitute acting in bad faith.
  • The duty to settle reasonably: if an insurer fails to come to a reasonable settlement because they believe they can reduce their liability at trial, they might have acted in bad faith.
  • The duty to defend: if your insurance company refused to defend you against a claim, they might have acted in bad faith.

Other examples of bad faith conducted by insurance companies include the following:

  • Failing to deny or approve a claim within a reasonable time after proof of loss has been submitted by the policyholder
  • Misrepresenting provisions of your insurance policy or relevant facts
  • Failing to provide facts or reasonable explanations for denying claims
  • Failing to adopt reasonable procedures for investigating claims
  • Failing to acknowledge a claim filed by a policyholder and not acting promptly after receiving the notice

Signs of Possible Bad Faith Practices

All insurance customers should be familiar with the following signs of possible bad faith practices:

  • Threatening not to pay a claim
  • Offering a settlement amount that is considered a lowball value of the claim
  • Demanding paperwork or documentation that is unnecessary
  • Utilizing illegal investigation tactics
  • Advising you against hiring an attorney
  • Increasing your premium when the incident was not your fault
  • Diminishing the insurance company’s responsibility to investigate the claim
  • Changing your policy without notice

Send a Demand Letter

With the help of a Denver insurance bad faith attorney, you can send your insurance company a demand letter. A demand letter demands that the insurance company uphold their duty to you as a policyholder. The letter should include the following:

  • A statement mentioning that it is a formal demand letter and that the insurer should act
  • A section explaining why the insurer has a duty to defend you
  • Notice in the letter that the refusal to defend you can be considered bad faith
  • Warn the insurer that you are considering filing a lawsuit
  • Give the insurer a time limit to respond

Taking Action Against an Insurer for Bad Faith

If you believe your insurance company acted in bad faith, you can take legal action against them. If you do take legal action, it will happen in one of the following two ways:

  • Tort: A tort is a civil wrong where the defendant caused the plaintiff harm with their actions or inaction.
  • Breach of contract: The majority of claims filed against an insurance company for bad faith are done so under breach of contract. The insurance premium you pay to the insurer is part of a contract. When the insurer fails to settle fairly, defend you, or investigate your claim, you can sue them for breach of contract.

Contact a Denver Insurance Bad Faith Attorney Today

Was your insurance claim denied because of bad faith practices? Do you believe your claim is being delayed on purpose? If so, it is in your best interest to speak with a Denver insurance bad faith attorney from Mandelaris Law. Call our office at (303) 357-9757, or complete our contact form to schedule a consultation today.