Insurance companies have legal obligations to their policyholders and, in some circumstances, to injured claimants. When an insurer fails to meet those obligations — by unreasonably denying claims, delaying payment, or refusing to settle within policy limits — it may be acting in bad faith. This is especially common after Car Accident Lawyer Florida and Slip and Fall Lawyer Florida where damages are significant.

Florida law provides remedies for bad faith insurance conduct that can result in damages far exceeding the original policy limits.

Bad faith occurs when an insurance company fails to act fairly and honestly toward its insured or a claimant, prioritizing its own financial interests over its legal obligations.

Florida recognizes two types of bad faith claims:

A claim by the policyholder against their own insurer. This arises when your own insurance company — your health insurer, homeowner's insurer, or uninsured motorist carrier — unreasonably denies or delays payment of a valid claim.

A claim arising from the insurer's handling of a liability claim against its insured. This typically occurs when an insurer refuses to settle a claim within policy limits when it reasonably should have, exposing the insured to an excess judgment.

• Unreasonable denial of a valid claim without a legitimate basis
• Unreasonable delay in investigating or paying a claim
• Failure to conduct a proper investigation before denying a claim
• Lowball offers that do not reflect the true value of the claim
• Failure to settle within policy limits when a reasonable opportunity to do so existed
• Misrepresenting policy terms to avoid paying a claim
• Failure to communicate with the claimant or their attorney
• Requiring excessive documentation not required by the policy

Florida Statutes § 624.155 governs first-party bad faith claims. Before filing a bad faith lawsuit, the claimant must:

1. File a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and the insurer
2. Give the insurer 60 days to cure the alleged bad faith conduct

If the insurer cures the violation within 60 days, the bad faith claim is extinguished. If it does not, the claimant may proceed with the lawsuit.

If an insurer is found to have acted in bad faith, the damages can be substantial:

• The full amount of the underlying claim — not limited to policy limits
• Consequential damages — financial harm caused by the insurer's bad faith conduct
• Attorney's fees and costs
• Punitive damages in cases of particularly egregious conduct

The ability to recover beyond policy limits is what makes bad faith claims so significant. An insurer that refuses to settle a $500,000 claim within a $100,000 policy limit may be exposed to the full $500,000 judgment plus additional damages.

The most common third-party bad faith scenario works like this:

1. You are injured by a driver with a $100,000 liability policy
2. Your damages clearly exceed $100,000
3. You make a reasonable settlement demand within the policy limits
4. The insurer refuses to settle, betting it can win at trial
5. A jury awards $400,000
6. The insured driver is now personally liable for $300,000 above the policy limits
7. The insured can then assign their bad faith claim against their own insurer to you

This scenario creates powerful incentives for insurers to settle reasonable claims within policy limits.

• Repeated requests for documentation you have already provided
• Unexplained delays in responding to your claim
• Denial letters that do not cite a specific policy provision
• Offers that are dramatically below the documented value of your claim
• Failure to acknowledge receipt of your claim
• Misrepresentation of what your policy covers

1. Document everything — keep records of all communications with the insurer, including dates, times, and what was said
2. Get everything in writing — follow up phone calls with written summaries
3. Keep copies of all submissions — every document you send to the insurer
4. Consult a bad faith insurance attorney — bad faith claims are complex and have specific procedural requirements

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

• Car Accident Lawyer Florida — Practice area overview and free consultation
• Miami Personal Injury Lawyer — Serving Miami-Dade County
• Fort Lauderdale Personal Injury Lawyer — Serving Broward County
• Orlando Personal Injury Lawyer — Serving Central Florida
• West Palm Beach Personal Injury Lawyer — Serving Palm Beach County
• Average Car Accident Settlement in Florida — What your case may be worth
• Florida Statutes of Limitations for Injury Claims — Two-year filing deadline

• Personal Injury Lawyer Florida — Free consultation, no fee unless we win
• Miami Personal Injury Lawyer — Serving Miami-Dade County
• Fort Lauderdale Personal Injury Lawyer — Serving Broward County
• Orlando Personal Injury Lawyer — Serving Central Florida
• Average Car Accident Settlement in Florida — What your case may be worth
• Bad Faith Insurance Claim in Florida — How to file a bad faith claim