IT'S MORE THAN MONEY.
Colorado Insurance Bad Faith Lawyers
When your own insurer drags out, lowballs, or flatly denies a claim it knows is valid, that is not just frustrating. In Colorado it can be its own lawsuit. We hold insurance companies accountable for bad-faith conduct statewide. You pay nothing unless we win your case.
No fee unless we winInsurance bad faith is what happens when an insurer treats a valid claim unfairly, by delaying it without reason, denying it without a reasonable basis, or paying far less than it owes. When your insurer does that, Colorado law gives you a way to make it pay more than the original benefit.
- Colorado recognizes two separate bad-faith claims. A common-law claim for breach of the insurer's duty of good faith and fair dealing, judged by whether the insurer acted reasonably, and a statutory claim for unreasonable delay or denial of benefits (C.R.S. 10-3-1115 and 10-3-1116).
- The statutory remedy is powerful. A first-party claimant whose benefits were unreasonably delayed or denied may recover reasonable attorney fees and court costs and two times the covered benefit (C.R.S. 10-3-1116(1)).
- The statutory claim under 10-3-1115 and 10-3-1116 protects first-party claimants, meaning people claiming benefits under their own policy. It does not apply to someone bringing a liability claim against an insured (C.R.S. 10-3-1115(1)(b)).
CGH Injury Lawyers takes on insurance companies that mistreat their own policyholders across every county in Colorado. We document the insurer's conduct, build the underlying claim to its full value, and pursue both the common-law and statutory paths when the facts support them. No upfront fees, and a free first consultation. Call (303) 209-9395 to ask for a bad-faith claim review.
The duty your insurer owes you
What insurance bad faith means in Colorado
When you buy insurance, the company takes on a legal duty to treat your claim fairly. Bad faith is the breach of that duty. The hard part of these cases is rarely whether the insurer was unfair. It is proving exactly how, and tying the conduct to the law that punishes it.
An insurer is allowed to investigate, ask questions, and even disagree about value. What it cannot do is act unreasonably. It cannot sit on a claim it knows is valid, deny payment without a reasonable basis, or manufacture a dispute to avoid paying. Those behaviors cross the line from hard bargaining into bad faith.
Colorado addresses that conduct two ways at once. The older, common-law claim treats the insurer's breach of its duty of good faith and fair dealing as a tort, and the central question is whether the insurer acted reasonably under the circumstances. The newer, statutory claim is more direct. Under C.R.S. 10-3-1115, a company in the business of insurance cannot unreasonably delay or deny payment of a claim for benefits owed to a first-party claimant, and a delay or denial is unreasonable when the insurer acted without a reasonable basis. The two claims can be brought together, and they often are.
Common law vs. statute
Colorado's two bad faith claims, decoded
A Colorado bad-faith case usually runs on two tracks. Knowing which one fits your situation, and whether both do, is the first decision that shapes the value of your claim.
Track 1: Common-law bad faith
- Grounded in the insurer's duty of good faith and fair dealing.
- The test is reasonableness: did the insurer act reasonably given what it knew or should have known?
- It is a tort, so the damages can include the harm the unfair handling caused, beyond the policy benefit itself.
- It can apply in both first-party and certain third-party settings, depending on the facts.
Track 2: Statutory bad faith
- Created by C.R.S. 10-3-1115 and 10-3-1116, focused on unreasonable delay or denial of benefits.
- A delay or denial is unreasonable when the insurer acted without a reasonable basis (C.R.S. 10-3-1115(2)).
- Protects first-party claimants, people seeking benefits under their own policy (C.R.S. 10-3-1115(1)(b)).
- The remedy is reasonable attorney fees and court costs and two times the covered benefit (C.R.S. 10-3-1116(1)).
Why we usually pursue both at once
The statutory claim and the common-law claim do not cancel each other out. The statute itself says the action it authorizes is in addition to other actions available by statute or common law (C.R.S. 10-3-1116(4)). When the facts support both, we plead both, because each reaches a different part of what the insurer's conduct cost you. The statutory path adds the pressure of attorney fees and double the covered benefit. The common-law path reaches the broader harm caused by the unfair handling.
Whether your situation supports one claim or both is a legal judgment that turns on the policy, the conduct, and the timeline. We make that call after reviewing the claim file, not before.
What it looks like in practice
Insurer tactics that can cross into bad faith
Not every low offer is bad faith. The line is reasonableness. These are the patterns we see most often when an insurer has crossed it, and what separates aggressive claims handling from conduct the law punishes.
Delay tactics
- Sitting on a claim, reassigning the file repeatedly, or going silent after a demand is submitted.
- Endless, repetitive document requests for records the insurer already has.
- Slow-walking an investigation while the policyholder's bills pile up.
- Refusing to make any decision, which is its own form of denial.
Denial and underpayment tactics
- Denying a covered claim without a reasonable basis or a real explanation.
- Lowball offers framed as the insurer's best and final evaluation before the file is developed.
- Cherry-picking parts of the policy or the record to justify paying less.
- Misrepresenting coverage, deadlines, or what the policy actually says.
These cases often surface in uninsured and underinsured motorist claims, where you are forced to negotiate against your own auto insurer, and in health, disability, homeowner, and life claims where the insurer holds the money and the upper hand. The common thread is that the company controls the timeline and the payout, and an unrepresented policyholder rarely has the tools to push back. Documenting the conduct as it happens is how a frustrating claim becomes a provable bad-faith case.
How we handle your case
How we build a Colorado bad faith case
A bad-faith claim has two moving parts: the underlying benefit the insurer should have paid, and the insurer's conduct in handling it. We develop both at the same time, because the strength of one drives the value of the other.
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Free claim review
We read your policy and the claim correspondence, then tell you honestly whether the insurer's conduct looks like aggressive handling or actionable bad faith. This costs you nothing.
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Pull the full claim file
We gather the policy, the declarations page, every letter and email, and a timeline of the insurer's decisions. In litigation, the insurer's internal claim notes often tell the real story.
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Prove up the underlying benefit
We document what the insurer actually owed, with medical records, bills, repair estimates, expert opinions, and a full damages calculation, so the covered benefit is established beyond dispute.
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Document the unreasonable conduct
We build the record that shows the delay or denial had no reasonable basis, the standard the statute uses (C.R.S. 10-3-1115(2)), measuring the insurer's choices against industry practice.
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Demand and negotiate
We send a documented demand that puts the statutory exposure on the table, including attorney fees and twice the covered benefit, which often shifts the negotiation immediately.
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File suit and try the case
If the insurer still will not be fair, we file in the appropriate Colorado District Court and present your case to a jury when that is what full recovery requires.
We do not throw out a number on a first phone call. Every bad-faith case turns on the policy language, the claim file, and the timeline of the insurer's decisions. What we can do on that first call is review the handling, flag the deadlines, and tell you the next concrete step. Past results never guarantee or predict a future outcome.
Compensation
What can you recover in a Colorado bad faith case?
A bad-faith recovery is built to do more than make you whole on the original claim. The point is to make the insurer's unfair conduct cost more than simply paying what it owed in the first place.
Statutory recovery (10-3-1116)
- Two times the covered benefit that was unreasonably delayed or denied.
- Reasonable attorney fees.
- Court costs.
- Available to first-party claimants for unreasonable delay or denial (C.R.S. 10-3-1116(1)).
Common-law recovery
- The unpaid policy benefit itself.
- Consequential financial harm caused by the unfair handling.
- Emotional distress in appropriate cases.
- Punitive damages where the conduct meets Colorado's high standard for them.
Here is the distinction that matters most. The statutory claim under C.R.S. 10-3-1116 has a fixed, defined remedy: attorney fees, court costs, and two times the covered benefit, and the action it authorizes is in addition to other claims available by statute or common law (C.R.S. 10-3-1116(4)). The common-law claim is broader and more fact-driven, reaching the wider harm the unfair handling caused. In the right case we pursue both, so no category of harm the insurer caused is left on the table. What a given case is actually worth depends on the policy, the conduct, and the proof, which is why we never put a number on it before we have read the file.
Insurer defenses
Defenses insurers raise, and how we answer them
Insurance companies defend bad-faith claims with a predictable set of arguments. Knowing what each one actually requires is how we keep a strong claim from being talked down.
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"We had a reasonable basis"
This is the core fight. The statute turns on whether the insurer acted without a reasonable basis (C.R.S. 10-3-1115(2)). A genuine, well-documented coverage dispute can be a defense. A basis invented after the fact, or one that ignores the records in the file, is not. We test the insurer's stated reasons against what it actually knew and when it knew it.
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"The claim was genuinely disputed"
Insurers argue that a fair difference of opinion on value cannot be bad faith. Sometimes that is true. But a dispute the insurer manufactured, or one it used as cover to delay a claim it knew it owed, is a different thing. The claim file usually shows which one it was.
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"You did not cooperate"
Policies impose cooperation duties, and insurers lean on them to shift blame onto the policyholder. We distinguish real, material non-cooperation from ordinary requests a reasonable claimant would not have to meet, and from demands designed mainly to create a paper trail of delay.
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"This is a third-party liability claim"
The statutory remedy in 10-3-1115 and 10-3-1116 protects first-party claimants, not people bringing a liability claim against an insured (C.R.S. 10-3-1115(1)(b)). We confirm at the outset which kind of claim you have, so we pursue the statutory path only where it actually applies and rely on common-law and other remedies where it does not.
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The honest part
Suing the company you pay every month
Many people hesitate to push back on their own insurer. They worry it will look ungrateful, or that the company will retaliate. Understanding how a bad-faith claim actually works usually puts that hesitation to rest.
- A bad-faith claim is not a complaint or a favor request. It is a legal action with a defined statutory remedy, and the insurer has to answer for its conduct in court.
- The statute is designed to level the field. By adding attorney fees and twice the covered benefit, it gives an ordinary policyholder real bargaining power against a company that counted on you giving up (C.R.S. 10-3-1116(1)).
- You paid premiums for coverage. Enforcing the promise you bought is exactly what the policy and the law contemplate, not an overreach.
- We handle the conflict so you do not have to. The insurer deals with us, not with you, once we are involved.
Deadlines and next steps
Protect your bad faith claim while you still can
Bad-faith claims live and die on the record the insurer creates. The earlier you involve a lawyer, the more of that record we can shape and preserve.
- Keep everything. Save every letter, email, voicemail, and claim number, and write down the date and substance of every phone call with the adjuster.
- Do not give a recorded statement or sign a broad authorization without legal review. Insurers use both to build a defense to your claim.
- Mind the deadlines. Bad-faith and underlying claims are subject to filing deadlines that depend on the type of claim and policy, and missing one can end an otherwise strong case. Have an attorney confirm the exact deadline for your situation early.
- Act before you accept anything. Once you sign a release for the underlying benefit, your standing to pursue the bad-faith conduct can be compromised, so get advice before you settle.
Your team
The team taking on the insurance company
CGH Injury Lawyers is a eight-attorney Colorado firm founded in 2016, formerly Cheney Galluzzi & Howard, LLC. Managing Partner Kevin Cheney is a member of the American Board of Trial Advocates (ABOTA) and Treasurer of the Colorado Trial Lawyers Association. Timothy G. Tarr has been recognized by Best Lawyers every year since 2023. Every bad-faith case is handled by a licensed Colorado attorney, not a paralegal.
Frequently asked questions
Frequently asked questions about Colorado insurance bad faith
What counts as insurance bad faith in Colorado?
Insurance bad faith is when an insurer treats a valid claim unreasonably, by delaying it, denying it, or underpaying it without a reasonable basis. Colorado recognizes a common-law claim for breach of the insurer's duty of good faith and fair dealing, judged by reasonableness, and a statutory claim for unreasonable delay or denial of benefits under C.R.S. 10-3-1115 and 10-3-1116. Aggressive claims handling is not automatically bad faith. The dividing line is whether the insurer acted without a reasonable basis.
How much can I recover for a bad faith claim in Colorado?
Under the statutory claim, a first-party claimant whose benefits were unreasonably delayed or denied may recover reasonable attorney fees and court costs and two times the covered benefit (C.R.S. 10-3-1116(1)). A common-law claim can reach broader harm caused by the unfair handling, and punitive damages where the conduct meets Colorado's high standard. The actual value depends on the policy, the conduct, and the proof, so we do not put a number on a case before reviewing the file.
What is the difference between common-law and statutory bad faith?
Common-law bad faith is a tort based on the insurer's duty of good faith and fair dealing, and the test is whether the insurer acted reasonably. Statutory bad faith comes from C.R.S. 10-3-1115 and 10-3-1116, focuses on unreasonable delay or denial of benefits, and carries a defined remedy of attorney fees, court costs, and two times the covered benefit. The statute says its action is in addition to other claims available by statute or common law (C.R.S. 10-3-1116(4)), so when the facts support both, we often pursue both together.
Does the statutory bad faith remedy apply to a claim against someone else's insurance?
Generally no. The statutory remedy in C.R.S. 10-3-1115 and 10-3-1116 protects first-party claimants, meaning people claiming benefits under their own policy. It does not cover a person asserting a liability claim against someone else who is insured (C.R.S. 10-3-1115(1)(b)). If your dispute is with another driver's liability insurer, the analysis is different, and we will tell you which legal path actually fits your situation.
My insurer is just slow. Is delay alone enough for a bad faith claim?
It can be. The statute prohibits unreasonably delaying payment of a claim for benefits, not just denying it (C.R.S. 10-3-1115(1)(a)). A delay is unreasonable when the insurer holds up a covered benefit without a reasonable basis. Some delay during a genuine investigation is normal. Stalling on a claim the insurer knows it owes, or going silent after a demand, is the kind of pattern that can support a claim. We review the timeline to see which side of the line your case falls on.
Does bad faith come up in uninsured motorist (UM/UIM) claims?
Often, yes. A UM/UIM claim is filed against your own auto insurer, which makes it a first-party claim, and every dollar paid comes off the insurer's bottom line. When a carrier unreasonably delays or denies a valid UM/UIM claim, the statutory bad-faith remedy under C.R.S. 10-3-1115 and 10-3-1116 can come into play. We frequently develop a documented bad-faith record alongside a UM/UIM claim, because the exposure tends to move a carrier off a low number.
What should I do if I think my insurer is acting in bad faith?
Keep every letter, email, and claim number, and write down the date and substance of each call with the adjuster. Do not give a recorded statement or sign a broad authorization without legal review. Do not accept a release of the underlying claim before getting advice, because that can affect your standing on the conduct. Then have an attorney review the claim file, since the insurer's own notes often reveal whether the handling was reasonable.
Do I need a lawyer to bring a bad faith case?
You are not required to, but these cases are hard to win without one. Proving the insurer acted without a reasonable basis usually means getting the internal claim file, comparing the handling to industry standards, and sometimes using expert testimony. The statutory remedy includes reasonable attorney fees (C.R.S. 10-3-1116(1)), which is part of how the law makes it practical for an ordinary policyholder to take on a large insurer. CGH offers a free consultation and works on a no fee unless we win basis.
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