If you’ve ever felt wronged by an insurance adjuster, you may have wondered “Can you sue the insurance company?” The short answer is yes. Insurance companies are legally obligated to uphold the terms of their policies, and when they fail to do so — whether by denying valid claims, delaying payments, or acting in bad faith — you have the right to take legal action.
However, suing an insurance company can be a complex process that requires a thorough understanding of the law. That’s where Guzman Law Firm comes in. Attorney Javier Guzman holds insurance companies accountable and fights for the compensation you deserve. If your insurance company is giving you the runaround, schedule an appointment or call us at (956) 516-7198 today.
Why do people sue their insurance company?
People often turn to legal action against insurance companies for one primary reason: the insurer didn’t live up to their end of the agreement. Common reasons that insurance companies fail their customers include:
- Claim denial: A policyholder files a legitimate claim, only for the insurance company to deny it without a valid reason or clear explanation.
- Underpayment: Sometimes, the insurer offers far less than the policyholder believes they are entitled to, leaving them unable to cover damages or losses.
- Delays: Prolonged processing times for claims can cause significant financial strain and frustration.
- Bad faith practices: This includes deliberately misleading the policyholder, refusing to investigate a claim properly, or other unethical actions.
These scenarios can leave policyholders feeling powerless, especially when they’ve spent years faithfully paying premiums. Fortunately, suing the insurance company can give you a chance to level the playing field. At Guzman Law Firm, we understand these challenges and are ready to help you seek justice.
Read testimonials from our satisfied clients
Can you sue an insurance company for breach of contract?
Yes, you can sue an insurance company for breach of contract. When you purchase an insurance policy, you enter into a legally binding agreement. This contract obligates the insurer to provide coverage as outlined in the policy terms. If they fail to uphold their end of the agreement, they’ve breached the contract. Examples of breach of contract include:
- Denying a claim that clearly falls within the policy’s coverage
- Failing to pay out a claim in full, despite the policyholder meeting all requirements
- Delaying payment beyond a reasonable timeframe without justification
Filing a breach of contract lawsuit requires meticulous documentation of your policy terms, claim details, and correspondence with the insurer. To prove breach of contract, you’ll need to demonstrate:
- A valid contract existed
- You fulfilled your obligations (e.g., paying premiums and filing claims correctly)
- The insurance company failed to meet its contractual obligations
- You suffered damages as a result
Can you sue an insurance company for not paying a claim?
Yes, you can sue an insurance company for not paying a valid claim. This is one of the most common reasons policyholders take legal action. Insurance companies are legally required to honor legitimate claims as outlined in the policy. When they fail to do so, they may be acting in bad faith. Reasons insurers may refuse to pay include:
- Arguing that the loss is not covered under the policy
- Claiming the policyholder failed to disclose critical information when purchasing the policy
- Disputing the severity or validity of the claim
If you believe your claim was unjustly denied, it’s crucial to gather evidence such as your policy documents, claim submission details, and any communications from the insurer. An attorney can help you identify whether the denial was legally justified or a breach of their obligations.
Can you sue an insurance company for taking too long?
Insurance companies are expected to process claims promptly. When they delay payment or investigation unreasonably, it can cause significant financial hardship. If you’re experiencing excessive delays, you may have grounds to sue for what’s known as “unreasonable delay.” Delays may be considered unreasonable if they lack a legitimate explanation or are part of a pattern of bad faith behavior.
Legally, insurers must follow “prompt payment” laws, which vary by state but typically outline specific timeframes for acknowledging, investigating, and resolving claims. For example, in Texas, insurance companies must:
- Acknowledge a claim within 15 days
- Investigate and decide on the claim within 15 additional days (30 if necessary).
- Pay valid claims within five business days of approval
Can I sue my insurance company for emotional distress?
In some cases, you may sue an insurance company for emotional distress caused by their actions. Emotional distress claims typically arise when an insurer’s bad faith practices cause severe psychological harm, such as anxiety, depression, or trauma.
For instance, imagine your insurance company wrongfully denies coverage for a medical procedure, leaving you unable to afford necessary treatment. The stress and emotional toll of such a situation could justify a claim for emotional distress.
To pursue this type of lawsuit, you’ll need to demonstrate:
- The insurer acted in bad faith or engaged in egregious behavior
- Their actions directly caused you emotional harm
- The extent and impact of your distress (often supported by medical or psychological evaluations)
Emotional distress lawsuits can be challenging to prove, but they’re a powerful tool for holding insurance companies accountable for the harm they cause. The team at Guzman Law Firm can determine whether this approach applies to your case.
See our recent media appearances.
Is it hard to sue an insurance company?
Suing an insurance company can be very difficult, and always requires a strategic approach. Insurers are often large corporations with significant resources, including experienced legal teams. They’ll fight to protect their interests, which means policyholders need strong legal representation to succeed against them. Challenges often include:
- Proving the insurer acted unlawfully or in bad faith
- Understanding complex insurance laws and regulations
- Gathering the necessary evidence to build a strong case
Despite these obstacles, policyholders often successfully sue insurance companies and recover damages. The key is working with an experienced personal injury attorney who understands the tactics insurers use and how to counter them effectively.
At Guzman Law Firm, we’ve won numerous cases, including insurance disputes, and are well-versed in navigating these challenges. We’re here to simplify the process and help you achieve a favorable outcome.
Need to turn the tables on your insurance company? Call Guzman Law Firm.
Can you sue the insurance company? Yes — if your insurance company has wrongly denied your claim, unnecessarily delayed payment, or otherwise acted in bad faith. You don’t have to face the battle alone. Guzman Law Firm is dedicated to protecting policyholders and ensuring insurance companies are held accountable for their actions.
Bad faith practices not only violate your rights but also undermine the trust you place in your insurer. Don’t let them get away with it. Contact Guzman Law Firm today, or call us at (956) 516-7198 for a free consultation. We’ll review your case, explain your options, and fight tirelessly to secure the justice and compensation you deserve.
More Helpful Articles by Guzman Law Firm:
- What Are the Penalties for Repeat Offenders for Marijuana in Texas?
- What Is the Difference between Assault and Aggravated Assault?
- Smuggler vs. Trafficker: What’s the Difference?
- Consequences of Transporting Undocumented Immigrants in Texas
- Are Edibles Legal in Texas?
