Bad Faith Insurance Attorney

Bad Faith Insurance Information

What is bad faith insurance?

An insurance policy is a contract between an insurance carrier and an entity it insures. The contract requires that the insurance company act in "good faith" in meeting its obligations under this contract. An insurance carrier is a fiduciary to its insured. This means the company is required to act in utmost good faith and fair dealing in protecting its policyholder's interests.

Examples in which an insurance company fails to act in good faith under the policy of insurance are when it acts unreasonably in denying a legitimate claim, protecting its insured's best interests, and withholds insurance benefits you, as an insured, are entitled to. This is known as bad faith insurance.

What are some other examples of potential bad faith insurance?

• termination or denial of an insurance claim which should have been paid
• unreasonable delays in payments to the insured
• refusing to cover or pay a legitimate, covered claim
• claiming an exclusion from insurance coverage which is debatable or non-existent
• failing to defend a policyholder who has been sued in an injury claim
• making lowball offer to settle
• refusing to pay 20% overhead and profit for property damage claims

What if a clause in the policy is not clear?

In Florida, the rules of contract apply to insurance policy interpretation by a court. Any ambiguities, or unclear provisions, in a contract for insurance (the policy) is construed against the insurance the insurance carrier and in favor of the policyholder, favoring a finding of coverage.

What if the insurance company's settlement offer seems low?

If your insurance company intentionally makes a lowball offer, or in other words, makes an unfairly low settlement, then this may be bad faith. Because an insurance company has a fiduciary relationship to its insured, the carrier is required to act reasonably and deal fairly in protecting its policyholder's interests.

What is a claim denial appeal?

Most insurance policies sets forth the grounds for appealing an adverse finding, such as a claims denial, within the insurance company. The insurance company must provide the reasons for the denial in writing. Thereafter, an appeal would be made per the policy.  Because this process depends on the policy language, it is advisable to speak to an insurance claims attorney.

In addition, an insured can file a complaint with the Chief Financial Officer, Department of Financial Services asserting the bad faith exercised by the insurance company.

What if my insurance company continues to deny my claim?

It is advisable to seek legal advice as soon as the claim is denied, and provide all documents to an insurance attorney.  This will provide your insurance attorney time to take those steps necessary to protect your rights and preserve your potential bad faith claim.

What damages can be recovered in a bad faith insurance lawsuit?

Depending on the circumstances, and if you establish insurance bad faith liability in court, then you could be eligible to recover damages including:

• the benefits of the policy
• additional losses and damages suffered as a consequence of having wrongfully been denied the claim, including your attorney's fees and costs
• punitive damages, if the conduct at issue warrants such a finding