Insurance companies collect premiums with the promise that they will pay valid claims. When they break that promise — denying claims without a reasonable basis, delaying payment to pressure policyholders into low settlements, or misrepresenting policy terms — Florida law gives you the right to hold them accountable through a bad faith lawsuit.

A successful bad faith claim can result in damages that far exceed the original policy limits.

Florida recognizes two types of bad faith insurance claims:

First-party bad faith occurs when your own insurance company fails to handle your claim fairly and in good faith. This applies to claims under your own policies — homeowner's insurance, auto insurance (including uninsured motorist coverage), health insurance, and disability insurance.

Florida Statutes § 624.155 governs first-party bad faith claims and 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

Third-party bad faith occurs when an insurer fails to settle a claim against its insured within policy limits when it had the opportunity to do so, exposing the insured to an excess judgment. This typically arises in liability insurance contexts.

• Denying a valid claim without conducting a reasonable investigation
• Misrepresenting policy terms to avoid paying a claim
• Offering an unreasonably low settlement when liability is clear
• Delaying payment without a valid reason
• Failing to communicate with the claimant
• Pressuring a claimant to accept a low settlement
• Canceling a policy after a claim is filed to avoid paying
• Failing to defend an insured against a covered claim

Before filing a first-party bad faith lawsuit in Florida, you must file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services (DFS) and serve it on the insurer.

The CRN must:

• Identify the insurer and the policy
• Describe the specific bad faith conduct
• Specify the statute violated

After receiving the CRN, the insurer has 60 days to cure the bad faith conduct — typically by paying the full amount owed. If the insurer cures within 60 days, you cannot proceed with the bad faith lawsuit. If they do not cure, you can file suit.

This pre-suit requirement is a critical procedural step. Missing it or filing it incorrectly can bar your bad faith claim.

A successful bad faith claim can result in:

• The full amount of the original claim — what the insurer should have paid
• Consequential damages — losses you suffered as a result of the insurer's bad faith conduct (additional medical expenses, lost wages, emotional distress)
• Attorney's fees and costs — Florida law allows recovery of attorney's fees in successful bad faith cases
• Punitive damages — in cases of particularly egregious conduct

In third-party bad faith cases, the insurer may be liable for the full amount of a judgment against its insured, even if that judgment exceeds the policy limits.

The statute of limitations for a bad faith claim under Florida Statutes § 624.155 is 5 years from the date the cause of action accrues. However, the clock does not start running until the underlying claim is resolved — either by judgment or settlement. See our guide on Florida's personal injury statute of limitations for related deadlines.

A successful bad faith case requires evidence of the insurer's unreasonable conduct. This typically includes:

• The claim file — all documents, notes, and communications related to your claim
• The insurer's investigation records
• Communications between the insurer and its adjusters and attorneys
• Expert testimony from insurance industry professionals about the standard of care
• Evidence of the insurer's pattern of conduct in similar cases

Obtaining the claim file through discovery is often the most important step in building a bad faith case.

Bad faith insurance litigation is complex. The pre-suit requirements are technical, the discovery process is extensive, and insurers defend these cases aggressively.

An experienced bad faith attorney can:

• Evaluate whether you have a viable bad faith claim
• File the Civil Remedy Notice correctly and on time
• Conduct discovery to obtain the insurer's claim file
• Work with insurance industry experts
• Negotiate a settlement or take the case to trial

At Juan Cordero Lawyers, we handle bad faith insurance cases on a contingency fee basis — you pay nothing unless we recover compensation for you.

Juan Cordero Lawyers fights insurance companies throughout Florida. If you believe your insurer has acted in bad faith 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.