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Colorado Springs Insurance Bad Faith Lawyer

Written by Timothy R. Bussey · Reviewed by Benjamin Wilcox · Last updated 28 September 2026

Key Takeaways

Deadline: 2 years for tort actions, including “tortious breach of contract” (C.R.S. 13-80-102(1)(a)); 3 years for contract actions (C.R.S. 13-80-101(1)(a)).
If you were partly at fault: damages are reduced by your share and barred entirely at 50% (C.R.S. 13-21-111).
Where it is filed: El Paso County Combined Courts, 270 S Tejon St, Colorado Springs, CO 80903.

What can I recover if my insurer unreasonably denied or delayed my claim?

Substantially more than the benefit itself.

C.R.S. 10-3-1116(1) gives a first-party claimant whose benefit was unreasonably delayed or denied an action to recover two times the covered benefit, together with reasonable attorney fees and court costs — and that is in addition to the benefit owed. It is a statutory remedy and it does not require proving the insurer acted maliciously, only that the delay or denial was unreasonable.

What counts as bad faith by an insurance company?

Conduct without a reasonable basis, not merely a decision you disagree with.

The recurring patterns: no meaningful investigation before denying, ignoring the medical evidence its own file contains, months of silence and repeated requests for documents already supplied, misrepresenting what the policy says, and an offer so far below the documented loss that it is not a valuation at all. Document every call and every deadline — the timeline is the case.

The unfair claim practices below are standards the insurance code sets for insurers; the private remedy for an unreasonable delay or denial is 10-3-1116. After a crash, these claims can involve an uninsured or underinsured motorist claim against your own insurer; see also our car accident page.

Colorado insurance bad faith rules (C.R.S., 2024 official publication)
Insurer conduct	Colorado rule	C.R.S.
Delaying or denying a covered benefit without a reasonable basis	Prohibited for first-party claims; a delay or denial is unreasonable if it lacks a reasonable basis	10-3-1115(1)(a), (2)
Your remedy for that delay or denial	An action in district court for two times the covered benefit plus reasonable attorney fees and court costs, in addition to other statutory and common-law actions	10-3-1116(1), (4)
Refusing to pay without a reasonable investigation	Listed unfair claim settlement practice	10-3-1104(1)(h)(IV)
Not affirming or denying coverage within a reasonable time after proof of loss	Listed unfair claim settlement practice	10-3-1104(1)(h)(V)
Not trying in good faith to settle promptly once liability is reasonably clear	Listed unfair claim settlement practice	10-3-1104(1)(h)(VI)
No reasonable explanation of why a claim was denied or a low offer made	Listed unfair claim settlement practice	10-3-1104(1)(h)(XIV)
Auto liability limits not disclosed within 30 days of a written request	$100 per day from the 31st day, plus attorney fees and costs to enforce it	10-3-1117(2)(a), (3)
Workers’ compensation, title and life insurance	Not covered by the 10-3-1115/1116 remedy	10-3-1115(5), (6)
Noneconomic damages on a breach-of-insurance-contract claim	Only with clear and convincing proof of a willful and wanton breach	13-21-102.5(6)(a)(I)(B)

Bad Faith Insurance Practices

You believe you have peace of mind because you have insurances in place to protect you, whether the policies are for your automobile, home, health, or to protect your business. That insurance policy is a contract that basically says your carrier will pay for covered damages if something happens that results in losses or damage.

So what can go wrong? It can be a personal or business disaster when your insurance company fails to live up to its legal obligations, under the terms of your policy.

Insurance companies have a duty to operate in good faith and with fair dealings with their policyholders and claimants. This is inherent in their contractual agreement with you. Occasionally, however, insurance companies fail to honor those contracts, and instead engage in bad faith practices. When this occurs, the harmed party has the right to sue the company.

Bad faith actions can set you back--physically, financially, and emotionally. Do not just give up if you are dealing with intimidating insurance company representatives that are acting unreasonable or refusing to pay when they should. At The Bussey Law Firm, P.C., our Colorado Springs accident lawyers know what it takes to hold these companies accountable, and can help you to pursue a bad faith claim. Call today at (719) 475-2555.

What Constitutes Bad Faith in Colorado?

Some signs of bad faith include, but are not limited to, the following:

Denying coverage with no basis;
Not keeping the claimant informed on a timely basis, especially with regard to information that is germane to the claim;
Not carrying out an investigation in a reasonable amount of time;
Taking an unreasonably long time to deny or pay the claim;
Once liability is clear, not attempting to settle the claim with a fair and reasonable offer;
Making an offer that is far below the real value of the claim, when liability is clear;
Not disclosing auto liability policy limits within 30 days of a written request (C.R.S. 10-3-1117).

Your case is not bad faith based upon a disagreement between you and the adjuster on some aspect of your claim. Claimants may think that a settlement is worth more than it really is, or there may be some contention about liability. On the other hand, it could be bad faith if the adjuster settled the claim for a very low amount and would not give you the necessary information that formed the basis of that decision. You do have rights, and a refusal to pay a settlement, or a low offer may be an act of bad faith.

A person at a kitchen table reading an insurance claim letter beside a laptop and a stack of bills — Illustration: reviewing an insurance claim decision.

What must your own auto insurer offer and pay under uninsured and underinsured motorist coverage?

Colorado requires every auto liability policy to include uninsured motorist coverage unless the named insured rejects it in writing, requires the insurer to offer limits equal to your bodily injury liability limits, and bars reducing that coverage by a setoff from other insurance such as medical payments or health coverage.

Underinsured coverage is part of the same protection: it covers the gap between the at-fault driver's liability limits and your damages, up to your own limits. Because the claimant is the insurer's own customer, an unreasonable delay or denial of UM/UIM benefits is a first-party claim covered by the bad faith remedy described above. Our uninsured motorist lawyer page explains these claims after a Colorado Springs car accident.

Uninsured and underinsured motorist coverage rules in Colorado (C.R.S. 10-4-609, Colorado Revised Statutes 2024)
Rule	What the statute says	C.R.S.
Coverage must be included	Every auto liability policy issued for a Colorado-licensed vehicle must provide it, unless the named insured rejects it in writing	10-4-609(1)(a)
Limits the insurer must offer	An amount equal to your bodily injury liability limits, before the policy is issued or renewed	10-4-609(2)
What it pays	The difference between the at-fault driver's liability limits and your damages, excluding exemplary damages, up to your coverage	10-4-609(1)(c)
Setoffs	Not reduced by any other coverage, including liability, medical payments, health or other UM/UIM insurance	10-4-609(1)(c)
Underinsured drivers	UM coverage includes damages you are entitled to collect from an underinsured driver	10-4-609(4)
Rideshare trips	A transportation network company cannot reject the coverage for a driver engaged in a prearranged ride	10-4-609(1)(a)(II)

How long do you have to bring an uninsured or underinsured motorist claim in Colorado?

Three years after the claim accrues, with a later deadline in some cases. If you preserve the claim against the at-fault driver in time, an underinsured claim is timely within two years after you receive that driver's settlement or judgment, and you never have less than three years.

For an uninsured motorist claim, the alternative period is two years after you learn the at-fault driver is not covered by any applicable insurance, again never less than three years from accrual. These periods come from a statute written for UM/UIM claims; the general deadlines for a bad faith tort or contract claim are in the table above. A claim for breach of the insurance contract accrues when the breach is discovered or should have been discovered. If your case also involves a rideshare accident or a truck accident, the liability claim against the at-fault driver runs on its own clock.

Deadlines for uninsured and underinsured motorist claims (C.R.S. 13-80-107.5(1) and 13-80-108(6), Colorado Revised Statutes 2024)
Claim	Deadline	C.R.S.
Uninsured motorist claim	Three years after it accrues; or two years after you know the at-fault driver has no applicable insurance, if the claim against that driver was preserved in time; never less than three years	13-80-107.5(1)(a)
Underinsured motorist claim	Three years after it accrues; or two years after you receive payment of the settlement or judgment against the at-fault driver, if that claim was preserved in time; never less than three years	13-80-107.5(1)(b)
When a contract claim accrues	On the date the breach is discovered or should have been discovered with reasonable diligence	13-80-108(6)

Sources

Speak to an Attorney About an Insurance Bad Faith Claim in Colorado Springs

A case of bad faith could mean a settlement not only for breach of contract by the insurance company, but also an additional tort claim as well. A tort claim opens the door to suing for punitive damages, and this can occur when the bad faith actions of the insurance company are especially harmful. This can result in a settlement that exceeds the policy limits of the carrier's policy.

You have rights. If you think the insurance company acted in bad faith regarding your claim, we can help. We will get the facts, and if we determine that the carrier acted in bad faith, we will take aggressive and effective action to pursue the maximum compensation possible.

Call The Bussey Law Firm, P.C. today at (719) 475-2555. We offer a free consultation to review and evaluate your case and your legal options.

Additional Information

Insurance claim videos from The Bussey Law Firm

Attorney Timothy R. Bussey Answers The Question: Are Insurance Companies On Your Side?

Colorado Springs attorney Timothy R. Bussey of The Bussey Law Firm, P.C., talks about what you should know when working with insurance companies following a car accident.

Published May 30, 2019 · 1:10 · Watch on YouTube

How We Found Insurance Coverage Nobody Else Did

When a cyclist is killed by a negligent driver who carries almost no insurance, a grieving family can still recover meaningful compensation by uncovering additional coverage, including underinsured motorist and resident relative policies that the family may not know exists.

Published May 30, 2026 · 3:50 · Watch on YouTube

Hit by an Uninsured Driver in Colorado? Here's How UM and UIM Coverage Works

Uninsured motorist (UM) and underinsured motorist (UIM) coverage protect Colorado drivers when the at-fault driver has no insurance or not enough insurance to fully cover the cost of injuries from a crash.

Published May 11, 2026 · 5:42 · Watch on YouTube

Frequently Asked Questions about Bad Faith Insurance Claims in Colorado Springs

To help you better understand the claims process, we’ve compiled some frequently asked questions with answers that you might find useful. Please note that this information is for general guidance, and it’s always best to consult with an attorney for personalized advice. Remember that these are general answers to frequently asked questions, and your specific situation may have unique aspects. If you have more questions or need personalized guidance on your bad faith insurance case, don’t hesitate to contact our experienced Colorado Springs bad faith insurance lawyers at The Bussey Law Firm, P.C. We are here to help you navigate this challenging process.

What is bad faith insurance, and how does it relate to personal injuries?

Bad faith insurance occurs when an insurance company does not act fairly and in good faith when handling your claim. If you’ve suffered a personal injury and your insurance company is not cooperating, it might be a case of bad faith. Our Colorado Springs bad faith insurance lawyers can assess your situation and help you understand if it applies to your circumstances.

How can I prove that my insurance company is acting in bad faith?

Proving bad faith insurance can be challenging, as it often involves complex legal processes. To establish bad faith, you’ll need to provide evidence of improper handling of your claim, such as denial without proper investigation, unreasonable delays, or unfair settlement offers. Our experienced attorneys can help you gather the necessary documentation and build a strong case.

Should I hire an attorney for my bad faith insurance claim, and why?

While it’s not a requirement, having an attorney by your side can significantly benefit your case. A qualified attorney can provide legal experience, negotiate with the insurance company, and ensure that your rights are protected. They can also help you understand your rights and responsibilities throughout the process.

How long do I have to file a bad faith insurance claim in Colorado Springs?

It depends on the claim. Tort actions, which the statute says include “tortious breach of contract”, have two years (C.R.S. 13-80-102(1)(a)); contract actions have three (C.R.S. 13-80-101(1)(a)); and your policy may set its own time limits. Confirm the deadline as soon as a claim is denied or stalls.

What can I expect in terms of compensation for a bad faith insurance claim?

The compensation you can receive in a bad faith insurance claim can vary widely depending on the specifics of your case. It may include reimbursement for medical bills, lost wages, pain and suffering, and punitive damages in certain instances. Our legal team will work diligently to ensure you receive the maximum compensation you deserve.

What is the typical timeline for resolving a bad faith insurance claim?

The duration of a bad faith insurance claim can vary, but it often involves several months to several years. The timeline depends on factors such as the complexity of your case, the insurance company’s cooperation, and any legal proceedings that may be necessary.

What should I do if my insurance claim was denied?

Get the denial in writing with the policy provision it relies on, and keep every piece of correspondence. Do not accept a verbal explanation and do not let the file go quiet: send written follow-ups, so that any later delay is visibly the insurer's. Then have the policy read against the denial before you accept it — a denial that misstates the policy is the clearest form of the statutory claim above.

What does a bad faith claim cost to pursue?

Nothing up front, and nothing at all unless there is a recovery. A bad faith review is free and the firm is paid a percentage of what it recovers rather than by the hour, so asking costs nothing. Call (719) 475-2555.

Who can bring a bad faith claim?

A first-party claimant — someone claiming benefits owed under their own policy (C.R.S. 10-3-1115(1)(b)(I)). That includes an uninsured or underinsured motorist claim against your own insurer. It does not include someone claiming against another person's liability policy (10-3-1115(1)(b)(II)(B)).

Where is a bad faith claim filed?

In a district court — for Colorado Springs, the El Paso County Combined Courts, 270 S Tejon St, Colorado Springs, CO 80903. The statute specifies district court, so this is not a small-claims matter.

Why does the statute matter more than a common-law bad faith claim?

Because it removes the need to prove the insurer's state of mind and attaches a defined remedy. It is often the more direct route, and the two are commonly pleaded together.

How long do I have?

It depends on the claim. Tort actions, which the statute says include “tortious breach of contract”, must be brought within two years (C.R.S. 13-80-102(1)(a)); contract actions within three (13-80-101(1)(a)); and the policy may set its own time limits. Confirm the deadline for your claims as soon as a claim is denied or stalls.

What Are the Colorado Deadlines and Rules on This Claim?

Which deadline applies depends on how the injury happened, not on what it is called. Colorado gives three years to a claim arising from the use or operation of a motor vehicle and two years to most other injury claims. Missing the deadline normally ends the claim regardless of its merits.

Colorado deadlines and rules that apply to this claim
A bad faith claim against your own insurer	Tort actions, including “tortious breach of contract”: 2 years — C.R.S. 13-80-102(1)(a); contract actions: 3 years — C.R.S. 13-80-101(1)(a); check the policy’s own time limits too
A claim arising from the use or operation of a motor vehicle	3 years — C.R.S. 13-80-101(1)(n)
Most other personal injury claims	2 years — C.R.S. 13-80-102
If you were partly at fault	Damages reduced by your share, barred at 50% — C.R.S. 13-21-111
Where a Colorado Springs claim is filed	El Paso County Combined Courts, 270 S Tejon St, Colorado Springs, CO 80903

Sources and References

Deadlines are cited by section to the Colorado General Assembly’s published 2024 revised statutes. This page is general information, not legal advice, and does not create an attorney-client relationship.

Past results do not guarantee future outcomes. Every case is decided on its own facts.