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Insurance Lawsuits

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Lawsuits Against Texas Insurance Companies

You Deserve to Be Treated in Good Faith

An insured party can bring a lawsuit against their insurance company for breach of contract, misrepresentation, nondisclosures, unfair settlement practices, or other misconduct. An insurance policy is a contract between an insured party and an insurance company. The policy spells out the obligations of both the insurer and the insured. When either party fails to fulfill their obligations under the policy, they are in breach of contract. When an insurance company does not fulfill their contractual obligations under the policy, the insured party can sue them.

An insured party seeking to recover damages under an insurance contract must be able to prove:

  • The insurance contract existed and was in force at the time of the loss.
  • The insured party complied with the terms of the insurance contract.
  • The insurer has breached the terms of the insurance contract.

Under a breach of contract lawsuit, the insured may recover the policy benefits they are entitled to. The insured may also be entitled to recover foreseeable consequential damages that result from the insurer's breach of contract.

Misrepresentation & Nondisclosure Issues in Texas

At issue in many insurance lawsuits is the matter of misrepresentation. For example, when a claim is made under an insurance policy, the insured party may feel that the coverage provided by the insurance company is less than what was represented or promised to them by the insurance company or its agent at the time of sale. If an insurance company or its agent promises one thing and then fails or refuses to fulfill that promise, they can be held liable for breach of contract, negligence, fraud, unfair insurance practices, or deceptive trade practices.

Insurance companies must clearly and fully disclose any limitations or exclusions an insurance policy may contain. If they fail to adequately disclose these and then later use them as a reason for denying a claim, they may be liable for deceptive trade practices or unfair insurance practices.

Unfair Settlement Practices & Other Forms of Misconduct

Laws related to insurance settlement practices exist to protect insured parties from unfair or negligent practices of insurance companies. If an insurance company fails or refuses to pay benefits that are owed under the policy, if they pay them too slowly, or if they fail to act promptly to settle, they may be in violation of laws that exist to protect consumers. Similarly, if an insurer's adjusters fail to adequately investigate a claim and pay too little as a result, then they have done a disservice to their customer, and they can be held legally liable for it in an insurance lawsuit.

There are other ways that an insurance company may violate the law or cause harm to customers. If an insurance company unreasonably terminates an insurance policy, unfairly discriminates against customers, or commits other unconscionable acts, they may be liable for their actions.

Insurance Lawsuit FAQ

When Can I Sue My Insurance Company?

It’s possible to sue an insurance company after they’ve committed something that is referred to as acting in bad faith. An insurance company is acting in bad faith when they do things like deny valid claims, misrepresent policies, and more.

Are Insurance Companies Required to Act Quickly?

Yes, insurance companies are required by the law to respond to claims within a reasonable amount of time. In Texas, a company has 15 days to acknowledge a new claim.

Why Is My Claim Being Delayed or Denied?

Insurance companies are businesses that want profits. Often, they’ll delay or deny a claim to protect their profits as much as possible. For example, an insurance company might repeatedly delay paying out a claim because they know that the claimant needs it. Then, they’ll offer a low settlement with the hopes that a person will accept it out of desperation. Sometimes, insurance companies will outright deny claims they know are valid hoping that the claimant will accept the denial. If your company is delaying or denying your claim, you need help from an insurance claim lawyer.

Learn More About Insurance Lawsuits & Your Rights

If an insurance company has injured you through negligence, deceptive practices, or unlawful discrimination, you may be entitled to compensation for your loss, including compensation for damages over and above the insurer's obligations under your policy. Compensation that can be claimed varies according to the nature of the claim and lawsuit but can include (depending on the circumstances) all benefits owed under the insurance policy, economic damages, compensation for mental anguish, attorney's fees, and any other relief the court deems proper. At Arnold & Itkin, a Houston insurance claim attorney can help you recover these compensable damages.

Contact a Houston insurance lawyer today for more information. Call us at (888) 493-1629.

Case Results

Check Out Our Victories

  • $8 Billion Top 3 Largest Jury Verdict in U.S. History Arnold & Itkin LLP tried a Risperdal case against Johnson & Johnson for failing to warn about one of the drug’s most damaging side effects: gynecomastia. Our skill, hard work, and dedication resulted in the third-largest jury verdict ever obtained ...
  • $357 Million Largest Workplace Accident Settlement in Texas history Arnold & Itkin LLP secured a massive nine-figure settlement against a transnational corporation for a workplace incident. The settlement set a Texas record for being the largest personal injury settlement in the state’s history.
  • $222 Million Record-Breaking Verdict for Widow Our firm won $222 million for a woman who lost her husband in an industrial accident caused by a faulty valve. We took the case to trial because the at-fault company refused to take responsibility. The jury saw through the corporate lies and double ...
  • $205 Million Confidential Settlement Obtained for Numerous Clients Arnold & Itkin reached a record $205,000,000 settlement on behalf of clients after several years of hard-fought litigation. The case settled just before trial was set to begin.
  • $139 Million Massive Settlement Achieved for Victims of an Oilfield Incident Arnold & Itkin LLP negotiated a huge $139,000,000 settlement for injured families affected by an oilfield incident in the eastern United States, settling one week before trial.
  • $117 Million Largest Single-Event Personal Injury Verdict in Louisiana History Arnold & Itkin represented a pregnant woman who experienced stomach pain and called Acadian Ambulance. The driver of the ambulance drove the ambulance into the back of a sugar cane truck causing the plaintiff's spine to be severed at T4 and for her ...
  • $116 Million Confidential Settlement Arnold & Itkin LLP negotiated a massive nine figure settlement on behalf of their clients after several years of hard fought litigation.
  • $114 Million Settlement Won for Victims of Pipeline Explosion Offshore injury lawyers at Arnold & Itkin fought for two workers who were injured in a pipeline explosion at sea, one of whom passed away. Our relentless investigation and advocacy resulted in a nine-figure settlement that will provide for our ...
  • $110 Million Record Settlement Achieved for Victims of Defective Products Arnold & Itkin obtained a record settlement for individuals harmed by defective, dangerous products. The result exemplifies our commitment to clients and justice for those seriously injured by the conduct of others.
  • $105 Million Record Settlement for Dangerous Product Victims Arnold & Itkin’s legal team helped represent those harmed by dangerous products. We were successful in recovering a $105 million settlement.
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“At Arnold & Itkin, the whole company is selfless—amazing. It meant a lot to me because I don’t think I could have made it through without them. I was very happy with the outcome of the case, very happy.”
Joe Workplace Explosion Victim

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