Bad Faith

In handling claims, insurance companies owe a duty to their insureds to act with the same care and diligence as an ordinary person would exercise in the management of their own business.  Failure to meet this duty is considered bad faith. 

The insurer must investigate the facts, give fair consideration to a settlement offer that is not unreasonable under the facts and settle, if possible, where a reasonably prudent person faced with the prospect of paying the total recovery would do so.  If you think that you’ve been the victim of insurance bad faith, call us immediately. 

Insurance Bad Faith circumstances may include:

• Failure to investigate a claim in a proper and reasonable manner
• Withholding benefits without cause
• Delaying payment of claims for unreasonable length of time
• Denying coverage
• Denying payment on claims
• Underpaying claims
• Undervaluing a claim
• Unfairly refusing to settle and/or reimburse claims
• Abusive or unreasonable claims process
• Cancellation of insurance policy unjustly

The Florida Supreme Court has enumerated several considerations for determining whether an insurance company has committed bad faith.  The totality of the circumstances is considered, in addition to the following:

• Whether the insurer was able to obtain a reservation of rights to deny coverage if a defense was provided;
• Efforts or measures taken by the insurer to resolve the coverage dispute promptly in such a way as to limit any potential prejudice to the insured;
• The substance of the coverage dispute or the weight of legal authority of the coverage issues;
• The insurer’s diligence and thoroughness in investigating the facts specifically pertinent to coverage; and
• Efforts made by the insurer to settle the liability claim in the face of the coverage dispute.

If you have experienced a situation that you think may constitute bad faith, contact us immediately.  We’ll review your claim and do everything in our power to maximize your recovery from the insurance company.