By Anderson, Cummings & Drawhorn, LLP on May 25, 2026
Key TakeawaysInsurance coverage should bring relief when a covered loss disrupts daily life. When a carrier stalls, underpays, or refuses a valid claim without a reasonable basis, many Dallas policyholders start asking how to sue an insurance company for bad faith under Texas law. Our Dallas insurance bad faith lawyers at Anderson, Cummings & Drawhorn, LLP, help clients sort through policy language, claim records, and insurer conduct to determine whether a bad faith case exists.
Insurance carriers often rely on delay, confusion, and unequal resources to discourage challenges. Our firm focuses on representing policyholders facing unreasonable insurance conduct across Dallas and the surrounding communities.
Insurance bad faith happens when a carrier fails to handle a claim honestly and fairly. In Texas, a carrier must review a claim reasonably, communicate within required timeframes, and make decisions based on a fair evaluation of the facts.
Not every denial qualifies as bad faith. A real dispute over coverage may exist in some cases. A bad faith claim usually turns on whether the insurer lacked a reasonable basis for denial, delay, or reduced payment, and whether the insurer knew or should have known its position had no proper support.
Texas law identifies several unfair claim settlement practices. Under Texas Insurance Code Section 541.060, prohibited conduct includes misrepresenting a material fact or policy provision and failing to attempt a prompt, fair, and equitable settlement once liability becomes reasonably clear.
In day-to-day claims, bad faith may look less formal. A carrier may keep requesting records already provided, offer a low amount without explaining the calculation, or deny coverage while overlooking obvious proof of loss. Some insurers shift their reasoning, giving one basis for denial early, then a different one later. Others delay a response long enough to pressure a policyholder into accepting less than the claim deserves. Texas bad faith law focuses on how the insurer handled the claim, not just the final answer.
A lawsuit may follow when a carrier acts unreasonably during claim handling. Common triggers include denial without a fair investigation, delay without justification, or payment below the proven value of a covered loss.
Timing matters. Before filing suit, a policyholder should review the policy, identify the stated reason for denial or delay, and compare that explanation with the claim record. When documents show a carrier had enough information to pay or resolve the claim fairly, legal action may become appropriate.
Anyone researching how to sue an insurance company for bad faith should understand the case usually depends on the claim decision and the process leading to that decision.
Start with the policy. Coverage terms, exclusions, deadlines, and notice requirements shape every insurance dispute. Read the denial letter closely and compare the carrier’s reasoning with the policy language.
Save emails, letters, estimates, photographs, claim forms, recorded statements, and notes from phone calls. A clean timeline often reveals where delay began, what information the insurer requested, and whether the carrier ignored proof supporting the claim.
A formal demand letter may also help. A demand letter outlines the dispute and demands specific action, often as part of an effort to resolve the matter before suit.
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Strong bad faith cases rely on organized proof. Important evidence often includes the policy, denial letters, claim notes, repair estimates, medical records, photographs, expert opinions, and written communications with the adjuster.
A timeline showing repeated delays, unanswered messages, or changing explanations can help establish unreasonable conduct. Internal claim records may later show whether the carrier overlooked evidence, misread policy terms, or placed cost savings ahead of a fair review.
A Texas bad faith claim may include more than unpaid policy benefits. Recovery may involve financial losses caused by the denial or delay, along with other damages allowed under Texas law when insurer’s conduct causes added harm.
The available amount depends on the facts. Some claims focus on compensation for benefits owed under the policy. Others include added losses tied to delayed payment, wrongful denial, or unfair settlement conduct. In certain cases, additional damages may apply when the evidence shows especially serious misconduct by the carrier.
For many policyholders, learning how to sue an insurance company for bad faith also means understanding how damages grow from both the underlying loss and the insurer’s claim handling.
Bad faith insurance disputes require careful review of policy language, claim records, and Texas law. Our team at Anderson, Cummings & Drawhorn, LLP helps Dallas clients evaluate unfair denials, long delays, and low settlement offers, then builds a clear case grounded in the facts. Call us at 817-920-9000 to address your insurance bad faith matter.
As a Fort Worth native and a double-Board Certified trial lawyer, John Cummings is dedicated to fighting for the rights of the injured. With a track record that includes record-setting verdicts and multi-million dollar settlements, he is an aggressive advocate who isn’t afraid to take on tough cases.
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by attorney Seth Anderson, whose team has more than 50 years of combined legal experience in helping victims of personal injury seek justice.
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