When your business suffers property damage, business interruption, or commercial auto losses, your insurance company is generally expected to evaluate and pay covered claims according to the terms of the policy. Williams Hart & Boundas, LLP represents commercial policyholders across Dallas and major Texas trucking corridors who face denied, delayed, or underpaid insurance claims. The firm handles first-party disputes involving commercial property, business interruption, commercial auto, and other business insurance policies, working to pursue the compensation that may be available under the policy.
Why Choose Williams Hart & Boundas, LLP for Your Commercial Insurance Claim
Insurance companies often rely on adjusters, legal counsel, consultants, and internal claims personnel to investigate losses and control payouts. Businesses dealing with a denial, delay, or partial payment may benefit from legal counsel that can review the policy, examine the insurer’s stated reasons, and challenge unsupported conclusions. Williams Hart & Boundas, LLP states that it represents policyholders in insurance disputes and offers consultations for these matters.
The firm’s insurance practice includes Rene M. Sigman, who is identified on the firm’s site as Of Counsel and as overseeing its insurance practice in Houston. The same attorney page states that she provides representation for policyholders in Texas insurance claims. Those descriptions support identifying her as part of the firm’s insurance team, but broad superiority claims should be avoided.
The firm’s lawyer pages also support naming Alyssa Salinas as an attorney at Williams Hart & Boundas, LLP and Sean McCarthy as a partner. Sean McCarthy’s profile and firm materials support describing him as a business litigation attorney, while care should be taken not to overstate awards or results beyond what is verifiable on the firm’s live pages.
What Qualifies as a Covered Commercial Property Loss
Commercial property insurance generally applies to physical damage to a business’s building, equipment, inventory, furniture, and other covered assets when the damage is caused by a covered peril. Depending on the policy, covered causes of loss may include fire, wind, hail, theft, vandalism, or certain types of water damage. The actual scope of coverage depends on the wording of the policy, any endorsements, exclusions, deductibles, and valuation provisions, as defined by the National Association of Insurance Commissioners (NAIC).
A commercial property policy may also include coverage for business personal property, tenant improvements, equipment breakdown, debris removal, or extra expense, depending on how the policy is written. Because coverage can vary significantly from one policy to another, even similar losses may be treated differently by different carriers. Careful review of the declarations page, coverage forms, endorsements, and exclusions is often necessary before drawing conclusions about what should be paid.
One frequent source of dispute is the difference between replacement cost and actual cash value. Replacement cost generally refers to the amount needed to repair or replace damaged property with materials of like kind and quality, without deducting for depreciation, subject to policy conditions. Actual cash value generally reflects depreciation. If a policy provides replacement cost coverage but the insurer pays only actual cash value, there may be a dispute over whether additional payment is owed once the policy requirements are satisfied. Understanding these valuation methods is critical when evaluating commercial property claims.
Common Reasons Insurers Deny or Underpay Property Claims
Insurers may deny or underpay property claims for many different reasons. Some disputes center on whether the reported loss falls within a policy exclusion. Others involve disagreements about the cause of damage, whether the damage predated the event, whether repairs are necessary, or whether the scope of work is too broad. Coverage disputes can also arise when an insurer takes the position that some portion of the loss resulted from wear and tear, inadequate maintenance, prior damage, or another excluded cause.
Valuation is another common issue. An insurer may rely on a lower repair estimate, limit payment to partial repairs, dispute code-upgrade costs, or omit categories of damage that the policyholder believes should be included. In larger commercial losses, disagreements can also arise over inventory valuation, equipment replacement, and the amount necessary to return the property to operational condition. Under Texas Insurance Code § 2703.002, insurers must act in good faith and deal fairly with policyholders.
Williams Hart & Boundas, LLP can review policy language, assess the insurer’s stated basis for denial or underpayment, and work with outside professionals where needed. Depending on the claim, that may include engineers, accountants, appraisers, contractors, or other consultants who can evaluate causation, scope, pricing, and business losses. The goal is to develop a record that supports the policyholder’s position under the terms of the policy.
Business Interruption and Loss of Income Claims
Business interruption coverage may apply when a covered property loss causes a temporary suspension or reduction of operations. In many policies, this coverage is intended to address lost business income during the period of restoration, subject to the policy’s definitions, waiting periods, and limitations. Some policies also include extra expense coverage for costs incurred to continue operations, reduce downtime, or relocate temporarily. These claims are a critical component of commercial insurance disputes.
These claims often become more difficult than the underlying property-damage claim because they require proof of both coverage and amount. The analysis may involve profit-and-loss statements, tax returns, invoices, payroll data, sales history, seasonal trends, contracts, and projections tied to the specific period of interruption. Insurers may challenge the calculation methodology, argue that losses were overstated, or contend that outside market conditions contributed to the decline in revenue.
Disputes can also arise over the length of the restoration period and whether the policyholder took reasonable steps to reduce continuing losses. A policyholder may need to show when repairs could reasonably have been completed, what operational interruptions were caused by the covered event, and which expenses continued despite the shutdown. In contested matters, legal counsel may work with forensic accountants or other financial professionals to present the claim in a documented and defensible way. The American Institute of Certified Public Accountants (AICPA) provides guidance on business valuation and loss calculation methodologies.
How Williams Hart & Boundas, LLP Handles Commercial Insurance Claims
A first-party commercial insurance matter usually begins with a review of the policy and the facts surrounding the loss. That review may include the declarations page, coverage forms, endorsements, denial letters, reservation-of-rights letters, adjustment history, estimates, photographs, communications with the insurer, and supporting financial records. The purpose of this early review is to identify the basis for the insurer’s position and evaluate whether the dispute involves coverage, valuation, causation, or claim-handling conduct.
If appropriate, the next step may involve developing and presenting additional support for the claim. That can include demand letters, supplemental claim materials, expert evaluations, and a detailed explanation of why the loss should be covered or why a higher amount may be owed. In some cases, a dispute may proceed through appraisal, negotiation, mediation, or litigation, depending on the policy terms and the posture of the claim.
If a case moves into litigation, the process can include written discovery, document requests, depositions, expert testimony, motion practice, and trial preparation. Litigation may also involve claims for breach of contract, statutory violations, or bad faith where the facts and law support those theories. The firm’s site states that it handles matters on a contingency fee basis in many cases, meaning clients typically do not pay attorney’s fees upfront, and fees are tied to a recovery if one is obtained. Williams Hart & Boundas, LLP has achieved results in commercial disputes and other matters.
Frequently Asked Questions About Commercial Insurance Claims
What is a first-party insurance claim?
A first-party insurance claim is a claim made by the policyholder under its own insurance policy for a covered loss. In the commercial setting, that can include property damage, lost business income, commercial auto physical damage, and other covered business losses. This differs from a third-party claim, which generally involves liability to someone else. For more information on how these claims are handled, contact Williams Hart & Boundas, LLP.
Can an insurance company deny my claim?
Yes. An insurer may deny a claim based on exclusions, limits, conditions, late notice, insufficient documentation, disputed causation, or the position that the loss is not covered under the policy as written. That said, a denial is not always the final word, and some denials can be challenged through additional evidence, policy analysis, negotiation, appraisal, or litigation. Under the Texas Insurance Code, policyholders have rights and remedies when facing claim denials.
What is bad faith in insurance?
Bad faith generally refers to claim-handling conduct that is unreasonable under the circumstances, such as failing to conduct an adequate investigation, misrepresenting policy terms, delaying a decision without a proper basis, or refusing payment without a reasonable basis. Whether bad faith exists depends on the facts, the policy language, and applicable Texas law. In some cases, additional remedies may be available beyond the amount of the policy benefits at issue. The State Bar of Texas provides resources on consumer rights in insurance matters.
Contact Williams Hart & Boundas, LLP for Your Commercial Insurance Claim
If your business is dealing with a denied claim, delayed payment, or an offer that appears too low, Williams Hart & Boundas, LLP may be able to evaluate the dispute and explain the available options. The firm’s first-party insurance page states that it represents commercial policyholders and business owners facing denials, underpayments, and delays, and that consultations are available.
Call (713) 230-2200 to speak with an attorney about your commercial insurance dispute. The firm handles many matters on a contingency fee basis, which generally means no upfront attorney’s fees and a fee only if compensation is recovered.