Dealing with Insurance Bad Faith in Florida Personal Injury Cases

When you file a personal injury claim, you expect your insurance company to act in good faith and handle your claim fairly. Unfortunately, this isn’t always the case. Insurance bad faith occurs when an insurance company fails to honor its obligations to policyholders. Understanding how to deal with bad faith practices is crucial in Florida personal injury cases.

What is Insurance Bad Faith?

Insurance bad faith refers to an insurer’s intentional or negligent failure to fulfill its contractual and legal obligations to the policyholder. This can manifest in various ways, including:

Unreasonable Delays: The insurance company takes an excessive amount of time to process or pay your claim without a valid reason.
Inadequate Investigations: The insurer fails to thoroughly investigate your claim before denying it.
Lowball Settlements: The insurance company offers a settlement far below what your claim is worth.
Denial of Coverage: The insurer denies your claim without a valid reason or misinterprets the policy terms.
Failure to Communicate: The insurance company does not respond to your inquiries or provide necessary information about your claim.

Recognizing Bad Faith Practices

It is essential to be aware of the signs of bad faith to protect yourself. Common indicators include:

Lack of Communication: Difficulty reaching your insurance adjuster or getting updates on your claim.
Inconsistent Statements: Receiving conflicting information from different representatives of the insurance company.
Unjustified Delays: Experiencing delays in claim processing or payment without clear explanations.
Pressure Tactics: Feeling pressured to accept a quick, low settlement offer.

Legal Protections Against Bad Faith

Florida law provides policyholders with protections against bad faith practices. Under Florida Statute § 624.155, you can file a civil lawsuit against an insurance company if it engages in bad faith. This statute allows you to seek damages beyond the original claim, including emotional distress and legal fees.

Steps to Take if You Suspect Bad Faith

Document Everything: Keep detailed records of all communications with the insurance company, including emails, letters, and phone calls. Note dates, times, and the names of representatives you spoke with.
Request a Written Explanation: If your claim is denied or delayed, request a written explanation from the insurance company detailing the reasons for their actions.
File a Complaint: Report the insurance company to the Florida Department of Financial Services. They can investigate and take action against insurers that engage in bad faith practices.
Consult an Attorney: If you suspect bad faith, consult with a personal injury attorney experienced in insurance disputes. An attorney can review your case, advise you on your rights, and represent you in legal proceedings if necessary.

Pursuing a Bad Faith Claim

To pursue a bad faith claim, follow these steps:

Notice of Intent: Before filing a lawsuit, you must provide the insurance company with a written notice of intent to sue. This notice gives the insurer 60 days to address and potentially resolve the issue.
Filing a Lawsuit: If the insurance company does not resolve the issue within 60 days, you can proceed with filing a lawsuit. Your attorney will help you draft and file the necessary legal documents.
Proving Bad Faith: To succeed in a bad faith lawsuit, you must prove that the insurer acted unreasonably and without proper cause. Evidence such as communication records, expert testimony, and documentation of your damages will be crucial.
Potential Outcomes: If successful, you may be awarded compensation for the original claim, additional damages caused by the insurer’s bad faith actions, punitive damages, and attorney’s fees.

Conclusion

Dealing with insurance bad faith in Florida personal injury cases can be challenging, but understanding your rights and taking the appropriate steps can help you protect yourself. Recognize the signs of bad faith, document your interactions, and seek professional legal advice if necessary. By being proactive and informed, you can hold insurance companies accountable and ensure you receive the compensation you deserve.