What Is a Stowers Demand in Texas Personal Injury Law?
If you’ve been injured in a car accident or another personal injury event in Texas, you may hear your attorney mention sending a Stowers demand to the insurance company. But what does that mean — and how can it help your case?
This blog explains the Stowers doctrine, how it works, and how it can be used to hold insurance companies accountable when they fail to settle a valid claim.
Understanding the Stowers Doctrine
The Stowers doctrine comes from a 1929 Texas case, G.A. Stowers Furniture Co. v. American Indemnity Co., which created a legal duty for insurers to act in good faith when settling claims on behalf of their insureds.
In simple terms:
If a liability insurer refuses a reasonable settlement demand within policy limits — and the case later results in a judgment above that amount — the insurer can be held financially responsible for the full judgment, not just the policy limits.
This legal tool protects injured parties and encourages insurance companies to settle legitimate claims promptly and fairly.
What Is a Stowers Demand Letter?
A Stowers demand is a formal letter sent by the injured person (or their attorney) to the insurance company that outlines:
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The facts of the case
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The insured’s liability
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The amount of damages
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A settlement offer within the policy limits
The letter puts the insurance company on notice: If they refuse the offer and lose in court, they may be responsible for the entire verdict — even above policy limits.
Requirements for a Valid Stowers Demand
For a Stowers demand to be enforceable in Texas, it must meet these criteria:
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Within Policy Limits
The settlement demand must not exceed the insured’s policy limits. -
Liability Is Reasonably Clear
The facts must show that the insured is likely liable for the injury. -
Clear Demand with Deadline
The demand must clearly offer to settle for a specific amount and provide a reasonable deadline for response (usually 10–14 days). -
Full Release
The plaintiff must agree to fully release the insured from all claims if the offer is accepted.
Why Would You Use a Stowers Demand?
Insurance companies don’t always want to settle quickly — even when fault is clear. A Stowers demand applies legal pressure and shifts the risk from you to the insurer. If they ignore it and gamble on a trial, they could end up paying more than the policy limit.
This can be especially effective in:
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Car accident claims
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Trucking accidents
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Serious injury or wrongful death cases
Can a Stowers Demand Help Settle Your Case Faster?
Yes. Many cases settle shortly after a valid Stowers demand is sent. Insurance companies know that if they reject a fair offer and lose in court, they could be sued for acting in bad faith.
Your attorney will typically send a Stowers demand after investigating the case, establishing liability, and gathering evidence of damages — such as medical records, police reports, and expert opinions.
What Happens If the Insurance Company Rejects It?
If the case goes to trial and results in a judgment above the policy limits, your attorney can help the insured party sue their own insurance company under the Stowers doctrine. This ensures you can still collect the full value of your judgment.
Do I Need a Lawyer to Send a Stowers Demand?
Yes. The rules around Stowers demands are complex, and the insurance company will have legal counsel evaluating every word. A Board Certified Personal Injury Trial Lawyer can ensure the demand is valid, well-supported, and properly delivered.
Related Pages for More Info
Talk to a Personal Injury Attorney in Tyler, TX
If you’ve been injured and the insurance company is delaying or denying your claim, a Stowers demand may be the key to getting a fair settlement. Cheryl A. Wulf is Board Certified in Personal Injury Trial Law by the Texas Board of Legal Specialization, an achievement held by only a small percentage of attorneys in Texas.
Cheryl A. Wulf, Attorney at Law
Office: 11702 State Hwy 64 E, Tyler, TX 75707
Call: (903) 525-9869
Fax: (866) 824-4469.
