What Is a Bad Faith Insurance Claim?
Insurance companies have a legal and contractual obligation to handle claims honestly and fairly. But not every insurer lives up to that duty. Some use unethical tactics to delay, minimize, or outright deny a valid claim, even when the evidence clearly supports a payout. This conduct is known as bad faith insurance, and it happens more often than most accident victims realize. Whether an auto insurance company stalls for months without explanation, makes an unreasonably low settlement offer, or refuses to communicate, these are bad faith insurance practices that you do not have to accept. Florida law gives you the right to fight back, and an experienced personal injury lawyer can help you hold the insurance company accountable and pursue the full compensation you are owed.
At Fran Haasch Law Group Car Accident & Personal Injury Lawyers, we are ready to stand up for your rights. Our team has extensive experience identifying bad faith insurance practices and taking aggressive legal action against insurers who fail to honor their obligations. If you believe an insurance company acted in bad faith toward you, do not wait. Contact us today to schedule a free consultation and learn how we can help you file a bad faith insurance claim to recover the compensation you deserve.
What Is Considered Bad Faith from an Insurance Company?
Bad faith insurance occurs when an insurer intentionally or unreasonably fails to uphold its legal or contractual obligations to a policyholder or claimant. Florida recognizes two main categories:
- First-Party Bad Faith: This involves your own insurer acting improperly toward you. For example, if your own auto insurance company refuses to pay a valid uninsured motorist claim or delays payment without good reason, that may constitute bad faith.
- Third-Party Bad Faith: This involves the at-fault party’s insurer acting improperly toward you as the claimant. Third-party bad faith often arises when the at-fault driver’s insurer refuses to settle within policy limits or ignores clear evidence of liability.
Common Examples of Bad Faith Insurance Practices
- Unreasonable claim denials: The insurance company denies your claim without a valid reason or without conducting a proper investigation.
- Unexplained delays: The insurance company delays responding to your claim, delays payments, or delays communicating any decision without a reasonable explanation.
- Lowball settlement offers: The insurer offers far less than your claim is worth, hoping you will accept a quick, inadequate payment.
- Misrepresenting policy terms: The insurer misrepresents your coverage or the terms of your insurance policy to reduce or deny what they owe you.
- Failing to investigate: The insurance company fails to conduct a timely or thorough investigation of your claim.
- Refusing to communicate: The insurer ignores calls, letters, or legal requests and leaves you without updates on your claim status.
What Are the Signs That an Insurance Company Is Acting in Bad Faith?
It is not always obvious when an insurer’s behavior crosses into bad faith. Here are some warning signs that should prompt you to suspect bad faith and speak with a personal injury lawyer right away:
- Your claim is denied with little or no explanation
- The insurance company delays your claim for weeks or months without updates
- You receive a settlement offer that is far below what your injuries and losses are worth
- The insurer repeatedly asks for documentation it has already received, without a valid reason
- Your adjuster is unresponsive or changes without explanation
- The insurance company fails to explain why it is disputing your claim
- You are pressured to accept a quick settlement before knowing the full extent of your injuries
- The insurer misrepresents facts or the applicable coverage in your insurance policy
How Do You File a Bad Faith Insurance Claim?
A bad faith insurance claim is a legal action you take against an insurer to hold them accountable for violating their duty of good faith and fair dealing. In Florida, a bad faith insurance lawsuit gives you the ability to recover more than just the original value of your personal injury claim. Here are the key steps to file and strengthen a bad faith claim in Florida:
- Document everything: Keep records of all communications, denial letters, settlement offers, and any other interactions with the insurer.
- Resolve your underlying claim first: In most Florida cases, you must first obtain a judgment or settlement on your personal injury claim before you can pursue a bad faith insurance lawsuit.
- File a Civil Remedy Notice (CRN): Under Florida law, you must file a CRN with the Florida Department of Financial Services before filing a bad faith lawsuit, giving the insurer 60 days to cure the violation.
- Hire a bad faith insurance lawyer: To prove bad faith, you need evidence that the insurer’s conduct was unreasonable or intentional. A skilled attorney knows what courts require to establish insurer bad faith.
- File the bad faith insurance lawsuit: If the insurer does not cure the violation within 60 days, your attorney can file suit and pursue additional damages beyond your original claim.
How Much Is a Bad Faith Insurance Claim Worth in Florida?
A successful bad faith insurance claim can ensure you recover all of the compensation you were originally entitled to under your personal injury claim, including amounts withheld during an insurer bad faith dispute. Beyond that, Florida law may allow you to recover additional damages when the insurance company acted in bad faith. These can include:
- Damages exceeding policy limits: If the insurer’s bad faith actions caused a judgment against you that exceeds the policy limits, the insurer may be responsible for the full amount.
- Consequential damages: You may recover losses you suffered because of the insurer’s delay or denial, such as additional medical bills or financial hardship caused by not receiving a timely payout.
- Attorney’s fees and court costs: Florida law may allow you to recover the legal fees you incurred fighting the insurance company.
- Interest on delayed payments: If the insurance company delays your valid claim payment, you may be able to recover interest accrued during the period of delay.
Should I Hire a Personal Injury Lawyer To Handle a Bad Faith Insurance Claim?
Yes. Bad faith insurance cases are complex, and insurers have teams of lawyers working to protect their interests. Going up against them alone puts you at a serious disadvantage. A personal injury lawyer levels the playing field and handles every aspect of your case. Here is how a bad faith insurance lawyer will help you:
Identifying bad faith conduct
Your attorney will review all communications, timelines, and insurer actions to determine whether the insurance company acted in bad faith and whether you have grounds for a bad faith insurance lawsuit.
Gathering evidence to prove bad faith
To prove bad faith, you need detailed documentation and a clear timeline showing how and why the insurer’s conduct was unreasonable. Your lawyer will collect that evidence and build a compelling case.
Handling the Civil Remedy Notice process
The Florida bad faith claim process has strict procedural requirements. Your lawyer will ensure the Civil Remedy Notice is filed correctly and on time, which is a critical step in preserving your right to sue.
Negotiating and litigating aggressively
Whether the goal is a favorable settlement or a verdict at trial, your attorney will fight to maximize the value of your bad faith claim and hold the insurer accountable for its bad faith practices.
Why Should I Choose Fran Haasch Law Group Car Accident & Personal Injury Lawyers?
When an insurance company refuses to honor its obligations, you need a legal team that knows exactly how to fight back. Fran Haasch Law Group Car Accident & Personal Injury Lawyers has years of experience representing accident victims throughout Florida, including those whose claims have been wrongfully denied, delayed, or devalued by bad faith insurers. Attorney Fran Haasch and her team understand the tactics insurance companies use, and they know how to counter them effectively. From identifying bad faith insurance practices to building the strongest possible case, the firm is committed to pursuing justice for every client.
The team at Fran Haasch Law Group does not back down from insurance companies. Whether dealing with an auto insurance company, a life insurance company that refuses to pay a legitimate claim, or any other insurer engaging in bad faith conduct, the firm is prepared to take your case as far as necessary to get results. Clients benefit from personalized attention, transparent communication, and relentless advocacy from the moment they reach out.
If you suspect bad faith from an insurer or believe your claim has been mishandled, do not face the insurance company alone. Contact Fran Haasch Law Group Car Accident & Personal Injury Lawyers today to schedule your free consultation. There are no fees unless we win, so there is no risk in reaching out.
