You pay insurance premiums every month expecting your insurer to be there when you need them. When an insurer fails to honor that obligation — denying valid claims, dragging out investigations, or offering pennies on the dollar — Florida law gives you the right to hold them accountable through a bad faith claim. This often arises after a Car Accident Lawyer Florida or other serious injury where the insurer refuses to pay a fair settlement.

A bad faith insurance claim is a legal action against an insurance company for failing to handle a claim fairly, honestly, and in accordance with Florida law. Insurance companies have a legal duty to act in good faith toward their policyholders and claimants. When they breach that duty, they can be held liable for damages beyond the original policy limits.

The insurer denies your claim without a reasonable basis — citing exclusions that do not apply, misrepresenting policy terms, or ignoring clear evidence of coverage.

The insurer fails to conduct a thorough investigation before denying your claim, or relies on a biased investigation designed to support a denial.

The insurer delays acknowledging your claim, requesting unnecessary documentation, or paying an undisputed amount without a valid reason.

The insurer offers a settlement that is clearly inadequate given the evidence of your damages, hoping you will accept out of financial desperation.

The insurer fails to respond to your calls and letters, or provides vague and evasive responses to legitimate questions about your claim.

The insurer misrepresents the terms of your policy, the status of your claim, or the applicable law to discourage you from pursuing your full entitlement.

Florida Statutes § 624.155 is the primary statute governing bad faith insurance claims in Florida. It requires insurers to:

• Attempt in good faith to settle claims when liability is reasonably clear
• Promptly acknowledge and investigate claims
• Provide a reasonable explanation for any denial or partial payment
• Not misrepresent policy terms or coverage

Violations of these requirements can give rise to a bad faith claim.

Before filing a bad faith lawsuit in Florida, you must file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and serve it on the insurer. The CRN gives the insurer 60 days to cure the bad faith conduct. If you received an insurance claim denial, this is often the first step toward a bad faith action.

This is a mandatory pre-suit step — skipping it will bar your bad faith claim. An attorney can ensure the CRN is filed correctly and on time.

A successful bad faith claim can result in:

• The full policy benefits owed on the underlying claim
• Consequential damages — losses caused by the insurer's bad faith conduct
• Attorney's fees — recoverable under Florida law in successful bad faith cases
• Punitive damages — in cases of particularly egregious or intentional misconduct

It is important to understand the difference between a bad faith claim and a breach of contract claim:

• Breach of contract: The insurer simply failed to pay what the policy requires. Damages are limited to the policy benefits owed.
• Bad faith: The insurer acted unreasonably or dishonestly in handling the claim. Damages can include consequential damages, attorney's fees, and punitive damages — far exceeding the policy limits.

Many insurance disputes involve both a breach of contract claim and a bad faith claim.

Bad faith insurance litigation requires a thorough understanding of Florida insurance law, the claims handling process, and the insurer's internal standards and practices. An experienced attorney can:

• Evaluate whether the insurer's conduct rises to the level of bad faith
• File the Civil Remedy Notice correctly and on time
• Obtain the insurer's claim file through discovery
• Work with insurance industry experts to establish the standard of care
• Negotiate a settlement or take the case to trial

Juan Cordero Lawyers handles bad faith insurance claims throughout Florida. If you believe your insurer has treated you unfairly after a Car Accident Lawyer Florida, Slip and Fall Lawyer Florida, or other injury, call 305.525.8957 for a free consultation — available 24 hours a day, 7 days a week.