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New Law to Protect Injured in Colorado

  • Synopsis: Published: 2010-08-14 - Law requires injured persons in Colorado to be fully compensated before insurance company can recover costs. For further information pertaining to this article contact: Burg Simpson Eldredge Hersh & Jardine, P.C..
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New Law to Protect Injured Coloradoans - New law requires injured persons to be "fully compensated" before an insurance company can recover its costs.

A new law comes into effect today that dramatically alters the way in which personal injury settlements are negotiated in Colorado. This law prevents insurance companies and healthcare benefit providers from bringing a claim for reimbursement against at fault parties until the injured party has first been fully compensated ("made whole") for all damages arising out of their injury.

Previously, insurance companies in Colorado were legally permitted to make claims for reimbursement (known as "subrogation") for health care benefits, disability benefits, lost income and the like paid to or on behalf of their own insureds. These reimbursement claims were made against at fault parties, regardless of whether the injured party was fully compensated or not. From August 11, 2010 insurance companies will be prevented from taking such action in many cases.

According to Burg Simpson founding shareholder and The American Trial Lawyers Association President Michael S. Burg, this new law offers greater protection for all Coloradoans.

"At Burg Simpson we view this new piece of legislation as a positive step for individuals' legal rights in Colorado. We envision that the legislation will not only help reduce the length and complexity of settlement negotiations, but will also enable individuals to obtain full and fair recovery for their injuries, something that up until now had not been the case," said Mr. Burg.

Burg Simpson shareholder Thomas Henderson, who focuses his practice on insurance law, echoed those sentiments. "This new law will benefit literally thousands of injured victims, as it recognizes that Coloradoans who are injured have the right to be fully compensated for their injuries before the insurance company that has paid for healthcare gets to reimburse itself."

With offices in Englewood, Cincinnati, Cody, and Phoenix, Burg Simpson Eldredge Hersh & Jardine, P.C., is a firm of award winning national trial lawyers, practicing in the areas of commercial and securities litigation, personal injury, class action, medical malpractice, dangerous drug litigation, defective products, insurance bad faith and employment law -

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