Business Insurance Claim FAQ | The Callahan Law Firm | Houston

FAQ About Business Insurance Claims

What Is A “Bad Faith Insurance Claim”

A bad faith insurance claim under Texas law is when an insurance company wrongfully delays or denies payment for a legitimate insurance claim.

How Do I Know if I Have a “Bad Faith Insurance Claim”?

When a business purchases an insurance policy, the insurance company that issues the policy has a duty of good faith and fair dealing. Texas bad faith insurance law prohibits an insurance company from wrongfully denying or delaying payment of a legitimate claim. If you believe your business insurance claim was unreasonably denied or delayed, contact an attorney experienced with battling major insurance companies.

What Are My Company’s Rights Under My Insurance Policy?

Your business insurance policy is a contract between your company and the insurance company. Under the policy your company is obligated to pay insurance premiums and to timely report any claim to the insurance company. The insurance company is then legally obligated to investigate the claim and pay a legitimate claim without unreasonable delay.

How Long Does The Insurance Company Have To Pay My Claim?

Under Texas law, an insurance company must pay legitimate claims without unreasonable delay. Texas law allows the insurance company to investigate your business insurance claim, but they must act reasonably and make a good faith effort to quickly resolve your company’s claim. If the insurance company does not give you a decision on your claim within six weeks after you first report it, contact an attorney experienced in handling first party cases against insurance companies, including bad faith insurance claims.

What Is The “Duty To Defend”?

If you or your business purchases a liability policy for insurance coverage against third party liability claims, the policy will almost always contain a duty to defend on the part of the insurance company. Under a policy with a duty to defend clause, if a claim is made against your business or one of its employees that is within the scope of coverage then the insurance company must pay for an investigation into the underlying incident that brought about the lawsuit and must pay for attorneys to defend the business and its employees in the lawsuit. If the insurance company refuses to provide a defense or delays the defense, you might have a bad faith case against the insurance company. If this happens, contact an attorney with experience in handling bad faith claims against large insurance companies.

I Feel That My Businesses’ Insurance Agent Has Misled Me About The Right Type Of Coverage I Need For My Business. Do I Have A Bad Faith Claim?

Under Texas law you probably don’t have a “bad faith” claim against your insurance agent, but there are still possible remedies for your business under the Texas Insurance Code against your agent. To determine what rights you may have to make a claim against your agent, you should contact an attorney with experience in dealing with large insurance companies and insurance agents.

If you have questions about a bad faith insurance claim in Texas, contact an attorney at The Callahan Law Firm for a free case evaluation.