When your insurance company denies your claim or offers a settlement far below what you deserve, you may feel powerless against a large corporation with endless resources. Insurance disputes can leave you struggling with unexpected financial burdens while trying to recover from property damage, business interruption losses, or serious injuries.
At Fahl & Donaldson, we represent businesses and individuals throughout Houston who are contending with difficult legal battles with insurance companies. Our attorneys bring extensive experience in commercial litigation and insurance law to help you navigate complex policy language, challenge unreasonable claim denials, and fight for the coverage you paid for. With our strategic approach to insurance disputes, we have successfully recovered millions of dollars for clients facing bad faith practices from insurers.
What Constitutes Insurance Bad Faith in Texas?
Insurance disputes can significantly impact your Houston business’ operations, cash flow, and ability to recover after a loss event. When Texas businesses purchase insurance policies, they expect insurers to honor their contractual obligations. Unfortunately, some insurance companies engage in practices that may constitute bad faith, leaving businesses with denied claims, delayed payments, or settlements far below what the policy should provide. Insurance bad faith occurs when an insurer unreasonably denies, delays, or underpays a valid claim.
The Texas Insurance Code and common law establish clear duties for insurers to act in good faith and deal fairly with policyholders. These legal frameworks protect businesses from unfair practices that could threaten their financial stability or recovery after a covered loss. When you work with our skilled insurance dispute attorneys, we can provide essential legal guidance when facing potential bad faith situations.
Texas law allows for significant remedies beyond the policy benefits, including statutory penalties, interest, and attorney fees when insurers violate their obligations. According to the Texas Department of Insurance, businesses that secure legal representation in complex claims disputes typically receive more complete compensation than those attempting to navigate the process alone.
An experienced Houston insurance attorney can identify when insurers cross the line into bad faith territory by recognizing tactics such as unreasonable claim denials, improper delays in processing claims, inadequate investigations, or misrepresentations of policy terms. These attorneys understand the technical language of insurance policies and can interpret exclusions, limitations, and coverage provisions that insurers may attempt to manipulate to minimize their financial exposure.
For Texas businesses, the stakes in insurance disputes are particularly high. A denied commercial property claim after hurricane damage, an underpaid business interruption claim, or a rejected liability claim can threaten the very survival of your enterprise. Insurance companies maintain teams of adjusters, experts, and attorneys working to minimize their payouts. Balancing this power inequality requires having one of our legal professionals on your side. Our attorneys will advocate for your rights and understand Texas’s specific bad-faith laws and how they apply to your unique situation.
What Types of Insurance Disputes Do Houston Businesses Face?
Houston businesses routinely encounter insurance disputes that can threaten their financial stability and recovery after losses. Understanding these common dispute types helps businesses prepare for potential challenges with their insurers.
Commercial Property Claim Disputes
Commercial property claims frequently lead to disputes in Houston’s severe weather environment. Insurers may contest damage causation, particularly when attempting to classify hurricane damage as flood damage to invoke different coverage limitations. These disputes often involve complex policy language about concurrent causation and anti-concurrent causation clauses.
Business Interruption Disputes
Business interruption disputes arise when companies cannot operate normally due to covered events. Insurance companies typically challenge the following:
- Calculation methods for lost profits and continuing expenses
- The necessary length of the interruption period
- Whether the interruption directly resulted from a covered cause
- The application of waiting periods and deductibles
- Extra expense coverage limitations
If you are involved in a business interruption dispute, our team of insurance dispute attorneys can help build your case.
Liability Insurance Disputes
Liability insurance disputes affect businesses when third parties file claims or lawsuits. These disagreements typically center on whether the insurer has a duty to defend, the allocation of defense costs, or if specific incidents fall within policy exclusions or limitations.
Industry-Specific Coverage Disputes
Industry-specific coverage disputes present unique challenges based on your business sector. Energy companies face challenges with pollution liability, while construction businesses encounter builder’s risk disputes. Technology companies often struggle with cyber liability coverage interpretations when data breaches occur.
Regardless of the type of insurance dispute your Houston business is facing, our team of legal professionals is here to represent your rights and interests and will help you build a strong case.
Contact Fahl & Donaldson for Experienced Insurance Dispute Representation
When facing an insurance dispute, having a knowledgeable attorney on your side is essential. At Fahl & Donaldson, our Houston insurance law attorneys have built a reputation for successfully challenging insurance companies that attempt to minimize, delay, or deny valid claims for Houston businesses. We understand the financial pressures and operational challenges that disputed claims create, and we work diligently to resolve these matters efficiently while maximizing your recovery.
We pride ourselves on our strategic approach, meticulous preparation, and willingness to take insurers to court when necessary to protect our clients’ interests. Don’t let insurance companies take advantage of complex policy language or procedural hurdles to deny your rightful coverage. Call us today at (346) 241-7355 or visit our contact form to schedule a consultation with our insurance dispute attorneys.