Dallas Bad Faith Insurance Lawyer

Insurers Should Act in Good Faith After Accidents

If you’re in an accident in Dallas County, you expect the insurance company to handle your claim fairly and make things right. At The Law Giant, Personal Injury & Accident Lawyers, we often see this situation arise after a car crash or other serious accident. You file an insurance claim to recover for your injuries – or the other driver files one against your policy – and you expect a straightforward process.

Unfortunately, not all insurance companies act in good faith.

Under Texas Insurance Code, Chapter 541 (Unfair or Deceptive Acts) and Chapter 542 (Prompt Payment of Claims), insurers are legally required to handle claims honestly and promptly.

A good-faith insurance company should:

• Promptly and thoroughly investigate your claim;

• Fairly consider all evidence and policy terms;

• Communicate clearly with you about coverage decisions;

• Provide written explanations for any denials;

• Negotiate in good faith to reach a fair settlement; and

• Resolve the claim within a reasonable time.

If your insurer delays, ignores your calls, passes your claim around between departments, or makes lowball offers without explanation, they may be acting in bad faith.

At The Law Giant, our Dallas insurance bad faith attorneys know how to identify unlawful tactics and hold insurers accountable. We’ll review your situation, explain your rights, and determine whether you have a valid bad faith claim under Texas law.

What Is Bad Faith Insurance?

Bad faith insurance practices in Dallas and across Texas can take many forms. In simple terms, bad faith means an insurance company fails to treat a policyholder or claimant fairly, as required by the policy and Texas insurance law.

When an insurer violates your legal rights or breaches its contractual obligations, you may have a bad faith insurance claim. In these cases, you should work with experienced attorneys who have a strong record of holding insurance companies accountable.

At The Law Giant, Personal Injury & Accident Lawyers, our Dallas insurance attorneys have handled countless disputes involving unfair, unethical, and unlawful insurer behavior. Common examples of insurance bad faith include:

• Delaying investigations without reasonable justification

• Failing to properly investigate a claim

• Denying claims without conducting a fair investigation

• Dragging out the claims process or transferring files repeatedly

• Making unreasonable demands for unnecessary documentation

• Misrepresenting policy language or coverage

• Misstating Texas insurance law

• Canceling or altering a policy after a claim is filed

• Failing to provide written reasons for denying a claim

• Accusing claimants of fraud without evidence

• Threatening or harassing policyholders

• Failing to communicate promptly or resolve claims in a timely manner

• Offering lowball or deceptive settlement negotiations

• Delaying settlement payments without cause

Denying a Claim Is Not Always Bad Faith

A denied insurance claim does not automatically mean the insurer acted in bad faith. Some claims may fall outside policy coverage or be legitimately denied after a proper investigation.

However, if your claim was denied without explanation, without investigation, or in clear disregard of strong evidence, you may have a valid bad faith case. Texas law requires insurers to explain denials in writing and act honestly when handling valid claims.

If you suspect your insurer acted improperly, contact our Dallas bad faith insurance lawyers immediately. We’ll review your policy, investigate your case, and help you hold the insurance company accountable.

Your Rights During a Bad Faith Claim

If you’re a policyholder in Dallas facing a third-party insurance claim, your rights are protected under the Texas Stowers Doctrine. This legal principle holds insurers accountable when they fail to protect you from excessive financial liability during settlement negotiations.

For example, if someone is injured in a car accident, slip and fall, or other incident and files a claim against your auto, homeowner’s, renter’s, or business insurance policy, your insurer must act reasonably and in good faith to defend and settle the claim.

Your insurance company cannot simply deny or ignore a legitimate settlement offer that could protect you from a larger financial judgment later.

What the Stowers Doctrine Means for Policyholders

Under Texas law, your insurer must exercise the same level of care and diligence that an ordinary, prudent person would use in handling their own affairs. The Stowers Doctrine applies when:

• The settlement demand falls within your policy limits;

• The claim is covered under your insurance policy; and

• A reasonable insurer would accept the offer to avoid exposing you to greater liability in court.

If your insurance company fails to settle when it reasonably should, and you end up with a judgment exceeding your policy limits, you may have grounds to file a bad faith or Stowers lawsuit against your insurer. This situation often occurs when an insurance company wrongly denies or delays a claim, or refuses to negotiate in good faith, leaving the policyholder financially exposed.

Filing a Bad Faith Claim Against Your Insurer

If you believe your insurer acted improperly or unlawfully during a third-party claim, contact a Dallas insurance bad faith attorney immediately.

Our team at The Law Giant, Personal Injury & Accident Lawyers will:

• Review your policy and claim history;

• Analyze the insurer’s handling of your case; and

• Determine whether there’s evidence of bad faith or a Stowers violation.

If the insurer’s failure to act in good faith caused you to lose a settlement opportunity or face a major judgment, we’ll help you pursue compensation for your financial losses.