Bad Faith Adjusting of the Claim

If an insurance company or a third party administrator improperly handles the adjustment of the claim so as to demonstrate no rational basis for its decisions, the claimant may bring an action in district court alleging “bad faith adjusting”.  Such an action would not be a workers’ compensation proceeding, and remedies would be decided by a district court judge and/or jury.  The exclusivity provisions of the Workers’ Compensation Act of Colorado do not preclude bad faith adjustment actions brought by claimants.  Defending such claims can be very expensive, and damages awarded the Plaintiff can total hundreds of thousands of dollars.