You bought insurance coverage to manage the risk of life’s uncertainties. When you face an unexpected loss or liability, you expect your insurer to step up and protect you and your family by paying claims or providing a legal defense.
When an insurance company engages in bad faith insurance practices in Florida, you could face substantial financial losses. Whether you need help rebuilding your home after a hurricane or compensation after an unfortunate car accident, your insurer’s failures can leave you exposed.
A bad faith insurance lawyer can help you pursue justice by holding your insurer to the promises they made in their policy. A bad faith insurance claim can get you the benefits provided in the contract, as well as compensation for any losses you suffered due to the insurer’s unscrupulous acts.
Understanding Bad Faith Insurance Claims
A bad faith insurance claim happens when an insurance company takes active steps to avoid honoring the terms of a policy or promise. This could occur when the insurer misrepresents the coverage or terms of your policy. However, these claims most often arise during the claims process.
Insurers have a legal duty to act in good faith when dealing with covered parties and third-party claimants. A covered party is any person on the policy, such as a homeowner and their family members. A third-party claimant is someone outside the policy entitled to claim benefits, such as someone bit by the homeowner’s dog.
Under the terms of the policy at issue and Florida statutory law, insurers must deal with claims fairly and reasonably.
Bad faith insurance claims can be a problem in any type of insurance, including the following:
- Liability insurance
- Life insurance
- Property insurance
- Accidental death and dismemberment (AD&D) insurance
Bear in mind that a policy can include multiple coverages. For example, a Florida auto policy may consist of personal injury protection (PIP) coverage for your injuries and liability coverage for others’ injuries and property losses. You can also add property coverage for your vehicle.
Understanding the concept of “bad faith” is critical to understanding when you can bring these claims against an insurer.
Insurance Company Acts of Bad Faith
An insurance company acts in bad faith when it violates the spirit or letter of an insurance policy or commits an act prohibited by Florida’s insurance laws. These acts often result from an insurance company prioritizing profits over its legal obligations to policyholders or third-party claimants.
The following acts could constitute bad faith practices on the part of the insurer:
- Denying a claim without a thorough investigation
- Delaying or denying a legitimate claim
- Failing to defend you against a claim
- Taking action in a claim without explaining why it denied, delayed, or underpaid the claim
These acts can have devastating effects on both covered parties, such as homeowners and vehicle owners, and third-party claimants, such as slip and fall accident victims. The promised benefits and legal protections they expected aren’t provided in their moment of need.
Signs of Bad Faith by Insurance Companies
Most of the time, the insurers are good at walking the line between good and bad faith without crossing it. However, a company occasionally crosses that line either as an institutional practice or in individual cases. The following signs might suggest that an insurer isn’t acting in good faith:
- Delaying claim processing without reason or explanation
- Withholding or denying benefits without proper cause
- Failing to communicate with claimants or policyholders
- Engaging in unfair settlement practices
- Misrepresenting policy terms
- Denying coverage without a reasonable explanation
If you think your insurance company has acted in bad faith, speak with an insurance lawyer. An attorney can analyze the insurer’s actions and determine whether they meet the good faith requirements under Florida law.
Proving Bad Faith in Insurance Claims
To win a bad faith lawsuit, your attorney must prove the following elements:
- You failed to receive a benefit provided in the insurance policy
- The insurer lacked proper cause for denying it
- You suffered harm as a result of the insurer’s acts
You’ll need evidence to prove these elements. Insurers rarely leave a paper trail admitting their bad faith practices. Instead, you may need an insurance expert witness to explain what insurers are supposed to do and how your insurer failed to meet that standard.
You’ll use your financial records to document the harm you suffered as a result of that failure. An experienced attorney will know which experts to hire and how to gather the evidence to present your case.
Damages and Compensation
Insurance bad faith lawyers typically seek three types of compensation from insurers. First, they’ll pursue the benefits the insurer withheld. For example, if an insurer wrongly denied your homeowners insurance claim after a hurricane, you can seek the money you should have received to repair your home.
Second, they’ll seek compensation for any consequential losses. For instance, you might have needed to rent a home temporarily as a result of your homeowners claim being denied.
Additionally, you’ll have attorney fees from hiring a lawyer to fight the insurer, and you may have suffered emotional distress from sleepless nights worrying about your situation.
In rare cases, you can also seek punitive damages in bad faith claims. These damages are meant to punish egregious practices.
How to Sue an Insurance Company
Before suing an insurance company, you should seek experienced legal representation from a bad faith insurance law firm that has handled these types of claims. The firm’s lawyers can review the correspondence from the insurer and determine whether it used bad faith tactics.
Your attorney will gather evidence to support your claim and validate your losses and present it to the insurance company to try to settle your case without the time and expense of litigation. If the insurer refuses to settle, your attorney can file a lawsuit to recover compensation for your losses.
You should consider consulting a bad faith insurance lawyer in Florida promptly after an insurer fails to meet the requirements of good faith and fair dealing. Your attorney will have a better chance of gathering fresh evidence of the insurer’s actions if you act quickly.
What to Expect From a Lawsuit
Lawsuits can be lengthy and complex, particularly when they involve insurance companies with virtually unlimited resources. During the lawsuit, your lawyer will use the evidence you provide, such as letters and emails from the insurer, and details gathered from the insurance company to support your case.
The insurer may settle your case quickly to avoid paying bad faith insurance defense lawyers for a lost cause. Conversely, it may defend itself by presenting its own evidence to prove that it acted reasonably.
Your bad faith insurance lawyer will be there to provide advice and representation during your case, protecting your rights and trying to reach a fair resolution of your case.
Time Limits for Filing a Claim
All legal claims are subject to a time limit known as a statute of limitations. In Florida, you have five years to file a lawsuit for an insurance contract dispute. However, the start date of this period depends on many factors. As such, it’s a good idea to consult a lawyer about a bad faith insurance lawsuit as soon as possible to avoid any missed deadlines.
Tips for Dealing With Bad Faith Insurance Claims
If you believe your insurance company has failed to handle a valid claim properly, you can take the following steps to preserve your right to a full and fair settlement or jury award:
- Review your policy
- Document your losses thoroughly
- Keep all correspondence from the insurance company
- Log phone calls with claim adjusters
- Avoid accepting any settlement offers you’re uncomfortable with
- Talk to a lawyer early in the process for guidance
Keep in mind that the law usually only gives you one chance to pursue a legal claim. If you accept a settlement, waive your rights, or miss any key deadlines, you may not get a second chance to file a bad faith claim.
Contact a Top Bad Faith Insurance Lawyer in Florida Today
Hiring a lawyer for bad faith insurance claims provides several benefits. An experienced lawyer will understand the law and the duties insurance companies owe to claimants and policyholders. They can guide you through the complex process of verifying and proving your claim so you can receive the compensation you deserve under the law.
They’ll also help you document your losses and gather evidence of the insurer’s actions. Ideally, they’ll be able to negotiate a settlement with the insurer after presenting your case. However, your bad faith insurance lawyer will take your case to court if the insurer fails to offer a fair settlement.
Most importantly, your insurance bad faith attorney will protect you from your insurance company’s unjust and unlawful acts.
Don’t let insurance companies take advantage of you — fight back with the help of a qualified bad faith insurance lawyer.
Frequently Asked Questions
Here are some answers to questions our clients frequently ask:
Under What Circumstances Would a Claim of Bad Faith Be Justified?
Bad faith claims happen most commonly when insurers deny or underpay legitimate claims. However, you should consider contacting a lawyer to discuss a possible legal claim whenever you feel that an insurer has failed to perform under the terms of a policy you’ve purchased or handled your claim unfairly or unreasonably.
Does Florida Have a Bad Faith Insurance Law?
Florida has a statute defining dozens of specific insurance company acts that violate the law. An insurer could act in bad faith when dealing with its policyholder or third-party claimants. Moreover, these acts could happen when marketing the policy, explaining its terms, or settling claims.
What Is Bad Faith in Insurance Law?
A bad faith insurance law firm handles disputes between insurance companies that unfairly deny or restrict coverage. Policyholders may have bad faith claims based on a number of dodgy or underhanded practices, including deception or mistreatment during the insurance claims process.
Are There Time Limits for Filing a Bad Faith Insurance Claim?
Every state has a statute of limitations for lawsuits based on contractual obligations. Florida gives parties five years to initiate legal action based on an insurance policy. However, there may be certain exceptions, so you should consult a lawyer early on to avoid missing any important deadlines.
What Happens if the Court Rules in My Favor in a Bad Faith Insurance Claim?
If your claim is successful, you stand to recover the benefits you’re due under the policy. You might also be awarded compensation for any losses you suffered due to the insurance company’s inaction.
Does Filing a Bad Faith Claim Affect My Future Insurance Premiums?
Insurance companies must comply with Florida’s insurance regulations when setting premiums.
Generally, your insurer can’t change your rates arbitrarily during a policy period or retaliate against you. However, they can decline to offer you a policy. Consequently, the most likely scenario is that your insurer will wait until your policy ends and decline to renew it.
What Is the Difference Between First-Party and Third-Party Florida Insurance Bad Faith Claims?
The first party is an insured party, such as the policyholder or a family member on the same policy. A third party is someone who can claim benefits other than someone on the insurance policy. For example, a pedestrian hit by an insured driver would be a third party.
What Role Does an Expert Witness Play in a Bad Faith Claim Case?
Expert witnesses can serve two main purposes. First, they can testify about standard insurance industry practices and whether the insurer met them. Second, they can provide an opinion about how the insurance company would have handled your claim if it had been acting in good faith.
Can I Handle a Bad Faith Claim on My Own, or Should I Hire an Attorney?
Taking on insurance companies can be difficult because they have armies of attorneys on their side. They might bury you in paperwork or use hardball tactics to try to bully or frustrate you into dropping your claim. Bad faith insurance attorneys can stand up to these tactics in your fight for a fair settlement or jury award.
How Long Does It Take to Resolve a Bad Faith Insurance Claim?
Every case is different. Some insurance disputes resolve quickly, while others can drag on for months or years. Your bad faith insurance attorneys can estimate the time your case might take based on your unique circumstances.
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