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Why Choose Vargas Gonzalez Delombard, LLP in Denver?

At VGD, we understand the stakes in a coverage denial. Our attorneys bring years of trial experience and insurance law knowledge to every matter. From high-altitude property damage to injury lawsuits stemming from downtown business activity, we have seen—and successfully litigated—it all. We bring a full-spectrum approach: precise policy analysis, powerful negotiation, and if needed, aggressive courtroom advocacy.

What Is General Liability Insurance?

General liability insurance—commonly called CGL insurance—protects businesses from third-party claims.

It is one of the most essential forms of insurance for Colorado businesses, particularly in industries like construction, hospitality, and tourism.

Typical coverages include:

  • Bodily injury to a customer or third party
  • Property damage caused by your operations or staff
  • Personal and advertising injury (e.g., defamation, IP infringement, libel, and slander)
  • Legal defense costs and court judgments, up to policy limits

In Colorado, general liability insurance is not mandated by law for most private businesses, but landlords, municipalities, or clients often require it as a contract condition. The Colorado Division of Insurance encourages businesses to carry it to avoid significant out-of-pocket legal exposure (DOI).

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Common Insurance Coverage Disputes in Denver

Policyholders in Denver often face disputes over:

  • Claim denials for bodily injury or property damage
  • Refusal to defend lawsuits brought against the insured
  • Low settlement offers or partial claim payments
  • Coverage exclusions that may be misapplied
  • Retroactive policy cancellations after a claim is filed

These issues frequently arise in high-risk sectors like construction, tech startups with public exposure, and seasonal recreation businesses operating in Denver or nearby mountain areas.

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Why Are Insurance Disputes Common in Colorado?

Colorado consistently ranks among the top U.S. states for severe weather insurance claims, particularly due to hail, wildfires, and snowstorms. For example:

In urban areas like Denver, litigation rates are high, and insurers often attempt to protect their margins through aggressive claim scrutiny.

Disputes also arise due to:

  • Vague or conflicting policy language
  • Denial based on misunderstood exclusions
  • Complex multi-party liability scenarios
  • Allegations of misrepresentation on the application
  • Insurers' failure to respond promptly, violating statutory deadlines

Colorado law requires insurers to respond promptly and fairly to claims and communications, and when they don’t, legal recourse is available.

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What to Expect During a Denver Coverage Dispute

At VGD, our Colorado insurance dispute attorneys follow a focused process:

  1. Comprehensive Policy Review: We assess the full policy, including endorsements and exclusions.
  2. Claim Investigation: We collect adjuster notes, internal emails, evidence, and damage estimates.
  3. Negotiation: We initiate pre-litigation negotiations to attempt fair resolution.
  4. Statutory Notice: If necessary, we send a written notice under Colorado law that the insurer’s conduct is actionable.
  5. Litigation: We file suit under C.R.S. §§ 10-3-1115/1116, seeking full damages plus two times the denied benefit and legal fees.

When Should You Call a Colorado Insurance Lawyer?

Time matters. Colorado imposes strict statutory and contractual deadlines, and acting quickly can preserve your rights. For example:

Breach of Insurance Contract

Deadline: 3 years.
Legal Basis: C.R.S. § 13-80-101(1)(a)

This is the standard statute of limitations for filing a lawsuit based on breach of an insurance contract (e.g., denial of a covered claim). The clock typically starts running from the date of denial or when the insurer fails to pay a valid claim.

Statutory Bad Faith (Unreasonable Delay or Denial of Benefits)

Deadline: 2 years.
Legal Basis: C.R.S. § 13-80-102(1)(a)

If you're bringing a claim under C.R.S. § 10-3-1115/1116 for unreasonable denial or delay of insurance benefits, the claim must be filed within two years of when the conduct occurred or was discovered.

Common Law Bad Faith

Deadline: 2 years.
Legal Basis: C.R.S. § 13-80-102(1)(a)

Common law bad faith (distinct from statutory bad faith) is also treated as a tort, so the same 2-year deadline applies.

Contractual Limitations Periods

Many insurance policies contain contractual time limits—often shorter than statutory ones—for filing a claim or lawsuit. For example, a policy might require the insured to bring legal action within 1 year after the date of loss or denial. Courts generally uphold these shorter time frames if they are clearly stated and not unconscionable.

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Who May Be Liable in a General Liability Dispute?

Liability in these disputes can fall on:

  • The insurer
  • Third parties, such as contractors, vendors, or event operators, who caused the underlying loss
  • Insurance agents, for failing to procure correct coverage or giving false information about the policy

Successful outcomes may include:

  • Full policy payouts
  • Attorney’s fees and court costs
  • Double damages under C.R.S. § 10-3-1116
  • Declaratory relief to clarify future coverage obligations

FAQ's

How do I file a liability claim in Colorado?

Is VGD contingency-based in Denver?

How long does my insurer have to respond to my claim?

Can I be denied coverage for a technicality?

What types of businesses most often face general liability insurance disputes in Colorado?

What if my insurer says my claim is “outside the scope” of coverage?

Does Colorado allow punitive damages in insurance bad faith cases?

How can I strengthen my general liability claim from the beginning?

How do I file a liability claim in Colorado?

Notify your insurer in writing, document all damages, and preserve evidence. Consult a lawyer before giving recorded statements.

Is VGD contingency-based in Denver?

Yes. We handle general liability insurance disputes on a contingency fee—no recovery, no fee.

How long does my insurer have to respond to my claim?

Under Colorado law, insurers must make decisions on claims within a reasonable time, and delays may constitute bad faith under C.R.S. § 10-3-1115.

Can I be denied coverage for a technicality?

Insurers often attempt this. Courts scrutinize exclusions closely, especially if not clearly explained. We challenge improper denials.

What types of businesses most often face general liability insurance disputes in Colorado?

In Colorado, disputes frequently arise in industries with physical risk or public exposure, like construction, hospitality, property management, outdoor recreation, and cannabis-related operations. The state's weather volatility and regulatory patchwork make these sectors especially prone to claim denials, liability questions, and insurer pushback.

What if my insurer says my claim is “outside the scope” of coverage?

Insurers often use tactics like alleged exclusions or misinterpretations to deny claims, arguing that the event wasn't a "covered occurrence." Many of these denials can be legally challenged, especially if the insurer had a duty to defend you. We can evaluate whether their stance is legally valid or indicative of bad faith.

Does Colorado allow punitive damages in insurance bad faith cases?

Yes, but they are limited. While C.R.S. § 10-3-1116 allows for double actual damages plus attorney’s fees for statutory bad faith, punitive damages under common law bad faith may be available if the insurer acted with fraud, malice, or willful disregard. Courts apply a high standard but may award them in egregious cases.

How can I strengthen my general liability claim from the beginning?

  • Report the claim promptly and in writing
  • Preserve physical evidence and incident reports
  • Avoid speculative statements to insurers
  • Keep a detailed communication log
  • Request a copy of your full policy (not just the declarations page)
  • Speak with a qualified insurance attorney early, especially before giving recorded statements

Recover What You’re Owed, Not Just What They Offer

In Colorado, insurers don’t always act fairly, but the law gives you powerful tools to fight back. Whether your business operates along the Front Range or in downtown Denver, Vargas Gonzalez Delombard, LLP has the experience and dedication to help you recover the benefits you paid for. Contact us today for a free consultation and hold your insurer to their promises.

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