Insurance is meant to provide security and support during some of life’s most difficult moments. But when an insurance company fails to honor its obligations, the consequences can be devastating. If you suspect your insurer is delaying, denying, or underpaying your claim without valid reason, you may be dealing with bad faith insurance practices—and you don’t have to accept it.
At SJJ Law, we help policyholders throughout Colorado hold insurance companies accountable and fight for the compensation they rightfully deserve.
What Is Bad Faith Insurance?
Bad faith occurs when an insurance company fails to act honestly, fairly, or in accordance with the terms of its policy. Insurers are legally required to handle claims in a timely, transparent, and equitable manner. When they don’t, they may be in breach of their legal duty.
Common Examples of Bad Faith Include:
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Unjustified claim denials
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Excessive delays in claim processing
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Misrepresenting policy terms or coverage
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Failing to conduct a proper investigation
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Offering unreasonably low settlements
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Threatening the insured to avoid payment
How Bad Faith Differs From a Simple Denial
Not every denied claim qualifies as bad faith. Sometimes insurers make honest errors. However, when there’s clear evidence that an insurer is intentionally delaying or denying a valid claim—or trying to mislead you—it crosses into bad faith territory.
If you suspect bad faith, it’s crucial to act quickly and gather documentation.
What You’re Entitled to in a Bad Faith Case
Colorado law allows policyholders to sue for damages beyond the value of the original claim. This includes:
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Compensatory damages (for financial losses caused by the delay or denial)
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Emotional distress damages
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Punitive damages (in extreme cases)
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Attorney fees and court costs
Holding the insurer accountable can also pressure them to fairly handle future claims—for you and other policyholders.
How to Prove a Bad Faith Insurance Claim
To build a strong case, your attorney must show that the insurer:
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Had no reasonable basis to deny or delay your claim
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Knew—or should have known— it was acting without a valid reason
Key Evidence May Include:
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The insurance policy and all correspondence
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Claims adjuster reports or investigation logs
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Proof of damages (photos, receipts, expert assessments)
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Timeline of the insurer’s responses—or lack thereof
Steps to Take If You Suspect Bad Faith
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Document everything. Keep records of all communication with your insurer, including emails, letters, and call logs.
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Review your policy. Make sure you understand what is and isn’t covered.
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Request a written explanation. Insurers are required to explain claim denials or delays in writing.
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Contact an attorney. Don’t go it alone—an insurance attorney can help you avoid mistakes and take strategic action.
Why Work with SJJ Law
At SJJ Law, we have a deep understanding of Colorado’s insurance laws and decades of experience handling bad faith cases. We’re committed to fighting for individuals and businesses when their insurers fail them.
Our team will:
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Investigate your claim
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Handle all communication with the insurer
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Build a compelling legal case
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Negotiate a fair resolution or take the case to court
Your insurer has a team of lawyers—you should too.
Get the Support You Deserve
If your insurance company isn’t treating you fairly, don’t wait. The sooner you act, the better your chances of success. Let SJJ Law step in and fight for the justice and compensation you deserve.
Contact us today for a free consultation and let’s discuss your legal options.