Bad Faith Insurance Defense
Fierce Advocates for Insurers Accused of Acting in Bad Faith
At Irelan | Stephens, we understand that insurers are under constant scrutiny—and when policyholders accuse a company of acting in bad faith, it can escalate quickly into complex litigation that threatens your reputation, your financial standing, and your ability to conduct business. Based in Houston, our law firm brings decades of combined litigation experience in insurance defense, including skillfully representing insurers in bad faith claims across Texas.
What Is a Bad Faith Insurance Claim?
Bad faith insurance claims typically arise when a policyholder alleges that an insurance company failed to uphold its contractual or statutory obligations in processing, investigating, or paying a valid claim. Under Texas law, insurers must deal with claims fairly and in good faith. A bad faith claim may be based on:
- Unreasonable denial of benefits
- Delayed payment or processing of a claim
- Failure to conduct a proper investigation
- Misrepresentation of policy provisions
- Threatening or coercive claim settlement tactics
If found liable, insurers may be exposed to actual damages, treble damages, attorney’s fees, and punitive damages under statutes such as the Texas Insurance Code §541 and §542, as well as common law bad faith doctrines.
How Irelan | Stephens Protects Insurers
When defending against bad faith allegations, precision, experience, and proactive strategy are critical. Our attorneys bring deep insight into both the regulatory landscape and courtroom dynamics of Texas insurance law. We take a tactical, evidence-driven approach to undermine the plaintiff’s claims and demonstrate that the insurer acted within the bounds of its duties.
Our defense strategy typically involves:
- Analyzing the policy and the factual timeline of the claim
- Identifying statutory compliance and evidence of good-faith claim handling
- Challenging causation and damages alleged by the insured
- Asserting affirmative defenses such as fraud, coverage exclusions, or non-cooperation
- Filing dispositive motions early to limit or dismiss claims
- Representing insurers at trial or in negotiated settlements
We understand the playbook of plaintiff attorneys in bad faith litigation—and we know how to counter it with sharp legal arguments and rigorous discovery.
Decades of Trial Experience
Our attorneys have handled hundreds of civil matters in both state and federal courts. We know how Texas judges think, how opposing counsel works, and how to position your case for success.
Tailored Legal Strategies
No two disputes are alike. We craft litigation strategies based on the unique facts of your case, the applicable law, and your business or personal goals.
Cost-Effective Advocacy
We understand that litigation can be expensive. Our team is committed to resolving cases efficiently—minimizing cost without compromising strength.
Transparent, Client-Focused Service
We keep our clients fully informed at every stage. You’ll never be in the dark about where your case stands or what to expect next.
Common Types of Bad Faith Insurance Defense Cases We Handle
At Irelan | Stephens, our attorneys are seasoned in defending insurers and adjusters across a broad spectrum of policy types and industries.
From allegations of undervaluation after a hurricane loss to complex multi-party commercial coverage disputes, we tailor our legal approach to the scope, industry, and complexity of the case.
Homeowners Insurance
Commercial Property Insurance
Automobile Insurance
Health and Disability Insurance
Life Insurance
Surplus Lines and Excess Carriers
Professional Liability / Errors and Omissions (E&O)
Commercial General Liability (CGL) Policies
Why Choose Irelan | Stephens for Bad Faith Insurance Defense?
Decades of Trial Experience
Our team includes trial-tested attorneys who don’t flinch when a case goes to court. We know how to dismantle bad faith claims before a jury or judge.
Business-Minded Legal Strategy
We recognize that your business reputation, relationships with policyholders, and cost exposure are all on the line. We deliver results that align with your long-term objectives.
Local Knowledge, Statewide Reach
From Harris County to West Texas, we represent insurers in both state and federal courts across Texas. Our understanding of regional jury pools, local judges, and the Texas Insurance Code gives us a strategic advantage.
Early Intervention and Risk Mitigation
The best bad faith defense starts before a lawsuit is filed. We assist insurers in responding to Stowers demands, Texas Insurance Code violations, and Department of Insurance complaints, helping reduce litigation exposure from the outset.
The Stakes in Texas Bad Faith Claims
Texas courts take bad faith allegations seriously. Under Chapter 541 (Unfair Methods of Competition and Unfair or Deceptive Acts or Practices) and Chapter 542 (Prompt Payment of Claims Act), claimants may be awarded up to three times the amount of actual damages, plus attorney’s fees.
Without strong representation, these claims can severely impact your financial and professional standing. Our job is to limit or eliminate that exposure.
Let Us Defend Your Reputation
When your company faces allegations of acting in bad faith, the legal and reputational risks are real. The experienced attorneys at Irelan | Stephens are ready to stand by your side, fight for your interests, and protect your brand.
We offer agile, high-caliber representation to insurers and claims professionals across Houston and throughout Texas. Whether in negotiations, regulatory proceedings, or at trial—we’re ready to defend your business like it’s our own.
Schedule a Consultation with an Attorney Today
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