Insurance Bad Faith Lawyer Colorado: Seeking 3X Damages

You did everything right. For years—maybe decades—you paid your insurance premiums on time. You held up your end of the deal, funding their high-rise offices and slick Super Bowl commercials, all based on a simple promise: they’d be there when you needed them most.

Then, the unthinkable happened. A catastrophic wreck, a life-altering injury, a tragedy that turns your world upside down. You turn to the very company you paid to protect you, expecting them to honor that promise.

Instead, you get the runaround. They delay. They deny. They treat you like an opponent. This isn’t a clerical error—it’s a cold, calculated business decision. They are betting you’ll be too hurt, too exhausted, and too intimidated to fight back.

They’re counting on you not knowing your rights. And they’re definitely counting on you not knowing that an insurance bad faith lawyer in Colorado can use a powerful state law to penalize them for this exact kind of corporate greed. Colorado law provides a weapon—a very big one—to hold them accountable and make them pay for their betrayal.

The Two Flavors of Bad Faith—And Why One Is a Game-Changer

When your insurer becomes the enemy, you have two ways to fight back under Colorado law. There’s the old-school, traditional way—and then there’s the modern, statutory way that has razor-sharp teeth.

We almost always file both. But the statutory claim is the one that gives you—the victim—the real power. It’s the fastest path to justice and the biggest financial penalty for the insurer.

This is how we turn their corporate misconduct into your legal power.

1. Statutory Bad Faith: The Powerful Claim

This is the game-changer, courtesy of Colorado Revised Statutes §§ 10-3-1115 and -1116. This law was written specifically to punish insurance companies for their bad behavior.

The standard is simple: we only have to prove the insurer delayed or denied a covered benefit without a reasonable basis. That’s it. We don't have to prove they had a malicious state of mind—only that their actions were objectively unreasonable.

The penalty is severe. If we prove they acted unreasonably, the law forces them to pay the covered benefit plus a penalty of two times the covered benefit. That’s a total recovery of three times what they originally owed, plus attorney fees and costs.

2. Common Law Bad Faith: The Traditional Claim

This is the old guard—the claim that existed before the legislature stepped in. It’s a much tougher hill to climb.

To win a common law claim, we have to prove two things: the insurer acted unreasonably, and they knew—or acted with reckless disregard for the fact—that their conduct was unreasonable. Proving their state of mind is a massive hurdle.

While we still bring this claim, the statutory path is the real weapon. It’s the leverage that forces multi-billion-dollar corporations to the negotiating table.

The Insurer’s Playbook of "Unreasonable" Conduct

Insurance companies aren’t creative—they’re methodical. Their playbook is filled with tactics designed to wear you down until you accept a fraction of what you’re owed or give up entirely.

These aren't just frustrating bureaucratic hurdles—they are deliberate maneuvers. When they cross the line from annoying to unreasonable, they become illegal under Colorado law.

Recognizing these plays is the first step to turning their own strategy against them.

• Failing to Promptly Investigate: An insurer has a duty to investigate your claim in a timely manner. When they "lose" evidence or take months to interview witnesses, they are acting unreasonably. It’s a strategic delay, not just slow service. You can learn more about the common reasons they use by reading our guide explaining why insurance companies deny claims.
• Denying Coverage Without Cause: This is a classic. An adjuster will misrepresent your policy language or twist the facts of your accident to invent a reason to deny coverage. They’re betting you haven’t memorized the dozens of pages of dense legalese in your policy.
• The Endless, Soul-Crushing Delay: Sometimes their best weapon is silence. They drag their feet for months—or years—without a legitimate reason. Your calls go unanswered. It’s a strategy designed to make you feel powerless. Under Colorado law, an unreasonable delay is just as much a violation as an outright denial.
• Offering a Ridiculously Low Settlement When Liability Is Clear: Here it is—the crown jewel of insurance bad faith. The other driver was clearly at fault, your medical bills are piling up, and they know what they owe. Instead, they make an offer so low it’s an insult—pennies on the dollar. This isn’t a negotiation; it’s intimidation.

And yes, it bears repeating: Offering a ridiculously low settlement when liability is clear is their signature move. It’s the clearest signal they are putting their profits far ahead of your well-being. More details on how Colorado juries punish bad faith insurers on mccormickmurphy.com.

Where Bad Faith Hits Hardest: High-Value Injury Claims

An insurer's incentive to cheat skyrockets when the stakes get higher. For a minor fender-bender, they might just pay to close the file. But when a claim involves hundreds of thousands—or millions—of dollars, their playbook gets nasty.

This is where we see the most egregious bad faith conduct. We are always prepared for litigation when we fight these corporate giants on high-value claims.

The Ultimate Betrayal in UM/UIM Claims

You pay for Uninsured/Underinsured Motorist (UM/UIM) coverage to protect your own family. It’s a promise from your own insurer that they’ll cover your losses if you’re hit by someone with little or no insurance.

The ultimate betrayal is when you turn to them for help, and they treat you like the enemy. They use the same delay-and-deny tactics on you—their loyal customer. This is where we see bad faith most often because the financial incentive is massive.

High-Value Injury Claims

The insurer’s desperation explodes when a claim involves catastrophic injuries or a tragic death. These are the claims that can sink their quarterly profits, so they fight them with everything they have.

• Wrongful Death Claims: Insurers will try to devalue a human life, questioning the deceased’s future earning potential to save money. As a Wrongful death attorney Denver, we fight to make them recognize the full human and financial loss.
• Spinal Cord Injury Claims: We see adjusters argue a victim’s paralysis isn’t as severe as doctors say, or lowball a settlement that won’t cover a lifetime of care. These are high-stakes battles over Spinal cord injury settlement Colorado cases.
• DUI Accident Claims: Even when a drunk driver is clearly at fault, your own insurer might fight your UM/UIM claim. We handle the Hit by drunk driver settlement Colorado portion of these claims to hold them accountable.

This is the arena where we thrive. When State Farm, GEICO, or any other corporate giant digs in on a high-value claim, we build the case for trial from day one, ready to expose their unreasonable conduct and demand the full 3x penalty. A deep dive into the Colorado personal injury claim process shows how these fights unfold. This is highlighted by the stunning $145 million verdict against NorGUARD on omtrial.com.

Your Next Move is the Only One That Matters

You know their playbook. You know they see you as a number. And now you know that Colorado law gives you a massive hammer—the 3x penalty—to swing back with.

But knowledge without action is just trivia. It’s time to act. This isn’t about panic; it’s about power.

Mind the Clock: The Statute of Limitations

In Colorado, the statute of limitations for filing a bad faith claim is generally two years. That clock starts ticking from the moment you knew, or should have known, that your claim was unreasonably denied or delayed.

Two years evaporates quickly. Evidence gets lost and memories fade. The time to start preparing is now.

Become a Meticulous Record-Keeper

From this moment forward, you are an archivist. Your most powerful weapon is documentation. Save everything.

• Every email.
• Every letter.
• Every phone call log—with the date, time, who you spoke to, and what was said.

This paper trail is the evidence we will use to build an undeniable timeline of their unreasonable conduct. It dismantles their excuses. Understanding strategies to fight insurance claim denial is critical, as is knowing how to appeal a denied insurance claim. This is where having the right the distinction between an attorney and a lawyer on your side matters.

The final step is reaching out to an insurance bad faith lawyer in Colorado who lives for these fights.

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You’ve seen their playbook, and now you know the rules they broke. You don’t have to fight this alone. At Conduit Law, we don’t just know this area of law—we live it. The initial conversation costs you nothing.

Let's talk. I got you.

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Disclaimer: The information provided in this blog post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. Readers of this website should contact an attorney to obtain advice with respect to any particular legal matter.

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