An insurance bad faith claim is not a dispute about how much a claim is worth. It is a claim that the insurer handled it improperly: that it delayed without reason, ignored what it was sent, undervalued what it could see, or refused a reasonable settlement and exposed someone to a judgment larger than the policy. A Florida insurance bad faith lawyer has to prove the underlying claim first and the conduct second, and the order matters.
First-Party and Third-Party Claims Are Different Animals
A first-party claim is against your own insurer, on your own policy. It is the uninsured motorist claim your carrier will not pay, the property claim it underpays, the medical benefit it cuts off. Florida provides a statutory remedy for that conduct, and the statute comes with procedural conditions that have to be met exactly.
A third-party claim is different and often larger. It arises where a liability insurer, defending its own policyholder, refuses a settlement within the policy limits that a reasonable insurer would have accepted, and a jury then returns a verdict far above those limits. The insured is left owing the excess, and the duty the insurer owed them is what the claim is about.
The Civil Remedy Notice and the Sixty-Day Cure
Before a statutory bad faith action can be brought, a civil remedy notice must be filed with the state financial services regulator and served on the insurer, on the prescribed form, identifying the specific statutory provisions violated and the facts relied on. The insurer then has sixty days to pay the damages or correct the conduct. If it does, the bad faith action is cured and does not proceed.
That cure window is not a formality to be resented. It is frequently the point at which a properly documented claim finally gets paid, which is a good outcome. What it punishes is a notice drafted vaguely or served early, because a defective notice can cost the claim entirely.
What Changed in 2023
Florida’s tort reform legislation altered this area meaningfully. Mere negligence by an insurer is no longer sufficient on its own to establish bad faith. Insurers gained a safe harbour: where the insurer tenders the lesser of the policy limits or the amount demanded within ninety days of receiving actual notice of the claim with evidence supporting the amount, a bad faith action does not lie. The legislation also imposed obligations of good faith on the claimant and their representatives, and allows a fact-finder to reduce damages to reflect the claimant’s own conduct.
The practical consequence is that presentation discipline now cuts both ways. A demand that is clear, complete, properly supported and reasonable in amount is harder for an insurer to answer and much harder to attack afterwards.
What Bad Faith Actually Looks Like
- Failing to tell the insured about a settlement offer within the policy limits
- Refusing a reasonable within-limits demand and leaving the insured exposed to the excess
- Failing to investigate, or investigating so slowly that the claim outlives its evidence
- Ignoring medical records and reports that were provided, then valuing the claim as if they did not exist
- Misrepresenting policy terms, or denying coverage on a ground the policy does not support
- Cutting off benefits without a reasoned basis or a medical examination that supports it
- Failing to explain a denial in writing when asked
Excess Judgments and Why They Concentrate the Mind
An insurer that turns down a reasonable offer within its limits is gambling with its policyholder’s money rather than its own, and Florida law holds it to that choice. Where the gamble fails, the insurer can be responsible for the entire judgment, not merely the limits it agreed to. This is the mechanism that makes a modest policy relevant to a catastrophic injury, and it is why a carefully documented time-limited demand is one of the most consequential documents in an injury claim.
What to Do If You Think Your Insurer Is Acting in Bad Faith
- Put every request in writing and keep the sent copies, not just the replies
- Ask for the denial and its reasons in writing, citing the policy provision relied on
- Request a certified copy of the complete policy, including the declarations page and endorsements
- Keep a dated log of calls, adjusters, promises and delays
- Do not give a recorded statement or sign a broad authorisation without advice
- Get advice before filing a civil remedy notice, because a defective one can be worse than none
How Alegra Law Builds a Bad Faith Case
We build the underlying claim as though the bad faith case already exists, because that record is the evidence: complete documentation, clear demands, defined response times and written confirmation of everything. Where the conduct warrants it we prepare and file the civil remedy notice precisely, obtain the claim file and adjuster notes, and pursue the excess exposure rather than settling for the limits. Where a matter calls for it we associate co-counsel with specific experience in these claims, on written client consent and without increasing the client’s total fee. There is no fee unless we recover.
When a Florida Insurance Bad Faith Lawyer Can Help
A Florida insurance bad faith lawyer is useful before the denial as well as after it, because the statutory remedy depends on a record that has to be built while the underlying claim is live. Once liability and damages are determined, the civil remedy notice has to be drafted precisely, since a defective notice can defeat an otherwise strong claim.
Frequently Asked Questions
What is a civil remedy notice?
It is the formal notice that must be filed with the state financial services regulator and served on the insurer before a statutory bad faith action can be brought. It has to identify the specific statutory provisions violated and the facts relied on, and it starts a sixty-day period in which the insurer can pay or correct the conduct and cure the claim.
Can I bring a bad faith claim while my injury claim is still running?
Generally not a first-party one. The action usually does not accrue until liability and the extent of your damages have been determined in the underlying claim. That is not a reason to wait to get advice, because the evidence for the bad faith case is created by how the underlying claim is documented.
My insurer was slow and disorganised. Is that bad faith?
Not necessarily, and less so than it once was. Florida law now provides that mere negligence alone is insufficient to constitute bad faith. Delay matters where it is unreasonable and where the insurer had what it needed to decide, which is why a documented paper trail of what was sent and when is so important.
What is an excess judgment and why does it matter?
It is a verdict larger than the at-fault party’s policy limits. Where an insurer unreasonably refused a settlement within those limits, it can be responsible for the whole judgment rather than just the limits. That mechanism is what makes a small policy relevant to a catastrophic injury.
What does it cost to hire Alegra Law?
Nothing upfront. We work on contingency, and if there is no recovery you owe no attorney’s fee. All fee terms are provided in writing before you sign.