Colorado’s Justices Reject Individual Claims Adjuster Liability

A person may only hold insurance companies liable for the denial or delay of payments on a claim, and not individual claims handlers, the Colorado Supreme Court ruled on Monday.

Multiple industry groups had written to the court arguing state law did not envision that claims adjusters could be held financially responsible for their decisions.

The U.S. Chamber of Commerce called such lawsuits a "cynical ploy to terrorize individual employees," and the Coalition Against Insurance Fraud warned that premiums would rise on insurance policies as a result.

Even some justices, during oral arguments in January, wondered who would take a job as a claims adjuster in Colorado with the potential for civil liability hanging over their heads.