Sanford, Florida Attorneys Holding Insurance Companies Accountable
When you purchase insurance, you expect the insurance company to honor the coverage you paid for when you need it. Unfortunately, disputes can arise after an accident, property loss, or other covered event. In some circumstances, Florida law allows an insured or other claimant to pursue a bad faith insurance claim. These cases can involve complicated insurance policies, evidence, statutory requirements, and civil litigation. Understanding what bad faith means and how Florida law addresses these claims can help you recognize when it may be appropriate to speak with an attorney.
At Herring & Herring, P.A., our Sanford attorneys represent individuals and families throughout Seminole, Brevard, Orange, and Volusia Counties, Florida, in personal injury claims and insurance disputes. With three generations of legal experience, our firm understands how frustrating it can be when an insurance company delays, undervalues, or denies a valid claim. When an insurer fails to handle a claim fairly, we can help you understand your rights and determine what legal options may be available.
What Is a Bad Faith Insurance Claim
A bad faith insurance claim generally involves an allegation that an insurer failed to act in good faith when handling or attempting to settle an insurance claim. Florida law provides a civil remedy against an insurer in specified circumstances. The statute includes circumstances in which an insurer does not attempt in good faith to settle a claim when, under all circumstances, it could and should have done so while acting fairly and honestly toward its insured and with due regard for the insured’s interests.
A bad faith allegation is different from simply disagreeing with an insurance company’s decision—the specific facts, policy language, applicable statutes, and how the claim is handled all matter.
What Could Lead to a Bad Faith Claim
Insurance claims can involve significant disagreements between policyholders and insurers. For example, an insurer might dispute whether an accident is covered, disagree about the value of a loss, or offer less than the claimant believes is appropriate.
Florida law identifies certain practices that may constitute unfair insurance practices. Under Florida Statutes § 626.9541, prohibited practices can include:
- Failing to adopt standards for properly investigating claims
- Misrepresenting pertinent facts or policy provisions
- Failing to act promptly on claim communications
- Denying claims without reasonable investigations based on available information
- Failing to provide certain explanations regarding claim denials or compromise settlement offers.
Not every claim, disagreement, or mistake automatically establishes bad faith. Florida law specifically provides that mere negligence alone is insufficient to constitute bad faith.
That distinction matters when evaluating whether an insurance dispute is a contract disagreement, a claim-handling issue, or potentially a bad faith matter.
Bad Faith After an Accident
A bad faith dispute can arise after an accident when an insurer must evaluate or settle a claim. For someone injured in a crash, the insurance process may already involve medical treatment, lost wages, property damage, and negotiations regarding an accident settlement.
An insurer’s handling of a claim becomes especially important when liability appears established, and the available insurance coverage may be insufficient to address the injured person’s damages.
An accident injury lawyer’s role may extend beyond negotiating an accident settlement. Depending on the circumstances, legal counsel may need to evaluate whether the insurer complied with applicable Florida law and whether pursuing civil litigation is appropriate.
What Is a Civil Remedy Notice
Florida law establishes a specific process for pursuing certain statutory remedies against an insurance company. Under Florida Law, a person generally must provide the Department of Financial Services and the insurer with written notice of the alleged violation before bringing an action under the statute. The law gives the insurer 60-days to pay damages or correct the circumstances that gave rise to the alleged violation.
The Florida Department of Financial Services explains that a Civil Remedy Notice is intended for parties beginning to file suit against an insurer when they believe the insurer has damaged them through specific acts. The department’s official process provides for filing the notice through its Civil Remedy filing system.
Because a Civil Remedy Notice can have important legal consequences, you should consider its contents and timing carefully. An attorney can help determine whether the statutory requirements apply to your situation and what information to include.
Florida’s 90-Day Rule for Liability Claims
Florida law also contains a specific provision addressing certain bad faith actions involving liability insurance claims. An insurance company generally cannot be sued for bad faith if it pays the policy limit or the amount the injured person requested within 90 days of receiving the claim, with enough evidence to support the requested amount. The statute also establishes rules concerning what happens if the insurer does not make the required tender during that period.
This is one reason it is important to preserve documentation and provide appropriate information concerning an accident claim. The circumstances surrounding the claim and the evidence provided to the insurer can become important later.
Property Insurance Bad Faith Claims Are Different
Florida law contains additional requirements for certain bad faith claims involving property insurers.
Florida Statute § 624.1551 provides that before someone can bring certain bad faith claims against a property insurance company, a court must first determine that the insurance company breached the insurance contract and enter a final judgment against the insurer. A property insurance dispute can follow a different legal path from a liability claim arising from an automobile accident or personal injury.
What Evidence May Matter in a Bad Faith Case
Evidence can be critical in determining how an insurer handles a claim. Important records may include the insurance policy, claim correspondence, photographs, accident reports, medical records, repair estimates, bills, settlement demands, insurer responses, adjuster communications, and documentation of the claim’s value. Keep copies of communications with the insurance company and avoid deleting emails, letters, text messages, photographs, or other records relating to the claim.
If an insurer requests information, carefully consider how and when to respond. Florida law also recognizes that insureds, claimants, and their representatives have duties to act in good faith when furnishing information about a claim, making demands, setting deadlines, and attempting to settle.
When Should You Contact an Attorney
You may want to speak with an accident injury attorney if an insurer has denied your claim, significantly delayed payment, disputed coverage, made a settlement offer that does not account for your documented losses, or failed to address relevant evidence.
An attorney can review the insurance policy and claim history, identify applicable Florida statutes, communicate with the insurer, and determine whether pursuing an accident settlement or civil litigation may be appropriate.
Timing can also matter. Insurance claims can involve statutory deadlines and procedural requirements, including requirements that must be met before you can file certain bad faith actions.
Frequently Asked Questions
What is a bad faith insurance claim?
A bad faith insurance claim occurs when an insurer fails to act in good faith while handling or settling an insurance claim. This can include denying valid claims, delaying payments, or offering settlements that undervalue damages.
What should I do if my claim is denied?
If your claim is denied, carefully review the denial letter and consult with an accident injury attorney. They can help determine if the denial was justified or if your insurer may have acted in bad faith.
What evidence do I need to prove a bad faith claim?
Key evidence includes copies of communications with your insurance company, your insurance policy, claim correspondence, photographs, medical records, and any documents showing the value of your claim.
Can I sue my insurance company for bad faith?
Yes, if you believe your insurer has acted in bad faith, you can file a lawsuit. However, consult with an attorney to navigate the complexities of these cases and ensure compliance with legal requirements.
What is a Civil Remedy Notice, and why is it important?
A Civil Remedy Notice is a written notice that an insured must provide to the insurer and the Florida Department of Financial Services before pursuing a bad faith claim. It is a required step that allows insurers an opportunity to rectify the situation within 60 days.
When should I consult with an accident injury attorney?
It’s advisable to consult an attorney if you experience delays in claim processing, receive a denial, or believe that your insurer is not negotiating in good faith. Legal counsel can help you understand your options and rights.
Talk to Herring & Herring, P.A. in Sanford, FL About Your Insurance Claim
Dealing with an insurance company after an accident can be frustrating, particularly when you are already coping with injuries, medical bills, lost income, or other financial losses. You should not have to navigate complicated insurance requirements without understanding your legal options.
Herring & Herring, P.A. can review the circumstances surrounding your insurance dispute and help you understand the legal options available under Florida law. Whether you are dealing with a denied claim, an inadequate settlement offer, delays in payment, or concerns about how your insurer handled your claim, having experienced legal counsel can help you understand the process.
Contact Herring & Herring, P.A. today at (407) 323-6700 for a free consultation to discuss your claim, review your options, and determine what steps may be available to protect your rights under Florida law.
Herring and Herring Law provides legal services to the cities of Orlando, Winter Park, Maitland, Ocoee, Oviedo, Lake Mary, Winter Garden, Longwood, Sanford, Apopka, Altamonte Springs, Casselberry, Winter Springs, Windermere, Deltona, Deland, Daytona Beach, and others not listed in Seminole County, Brevard County, Orange County and Volusia County, Florida.