Bad Faith Insurance Disputes
Insurance disputes, also known as insurance “bad faith” claims, or “unreasonable delay or denial” claims, result from the violation of an insurance company’s obligation to act in “good faith.” Although many policyholders forget this, it’s important to remember the following: the insurance company works for you. The Denver personal injury lawyers at Zaner Harden Law, on the other hand, will work hard for you.
It may not always feel like it, but you are in a contractual relationship with the insurance company, whereby they provide services and coverage for qualifying claims as per the stipulations of your policy. If you suspect your company has denied you benefits in an act of bad faith, consult a Denver personal injury lawyer who handles bad faith claims for countless other Colorado residents.
This good faith obligation is embedded in the core of an insurance company’s duty, and is meant to be indicative of a company’s commitment to abide by its contractual agreements with you satisfactorily and promptly, rather than trying to take advantage of you at a vulnerable point in your life.
In theory, it’s a simple process: you pay a certain premium that defrays the financial risk associated with insuring you for “X” amount of damages, should you be in an accident, and the insurance company dutifully covers qualifying claims when you have need to bring them. Unfortunately, this theoretically simple process can become muddied in practice.
This obligation generally requires that insurance companies perform the following when handling your Denver personal injury claim:
- promptly investigate the circumstances of your claim;
- communicate with you regularly and predictably about your claim’s status; and
- promptly remit payment to you for any undisputed portions of your accident claim.
When an insurance provider fails to render these and other services to you in a timely fashion, they may be acting in bad faith and you may be able to file a claim to recoup damages. In addition, if an insurance company unreasonably delays or denies payment of your claim, such action may entitle you to compensation beyond just the amount of the delayed or denied benefit that the insurance company owes you. In fact, in Colorado, the insurance company may also be responsible for double damages as well as attorneys fees and costs when they unreasonably delay or deny a claim.
If a company has no reasonable basis for denying your benefits, or if the company chose to disregard a reasonable basis of approving your claim, they may also be found to have been acting in bad faith, and you may be awarded extra-contractual benefits.
When Your Insurance Company Wrongfully Denies Your Claim
If you believe that your insurance provider has wrongfully denied your accident claim or has withheld from you certain benefits, you need to speak with a Denver personal injury lawyer who can help you determine whether or not the insurer had legitimate grounds in doing so.
Contact Zaner Harden Law for a free and confidential consultation by calling (303) 563-5354. Or, you can complete our Free Case Evaluation Form and we will contact you.