Florida Bad Faith Insurance Claims

Suing an Insurance Company for Bad Faith in Florida

Insurance is meant to provide security and peace of mind. When disaster strikes — whether it’s a car accident, property damage, or an injury — you expect your insurance company to stand by you. Unfortunately, some insurers prioritize profits over their policyholders, engaging in practices that unfairly delay, deny, or underpay valid claims.

Florida law recognizes this problem and gives policyholders powerful tools to hold insurance companies accountable. If you believe your insurance company has acted in bad faith, you may be entitled to bring a lawsuit and recover not just the value of your claim, but also additional damages caused by the insurer’s misconduct.

What Is Bad Faith Under Florida Law?

Under Florida Statutes §624.155, an insurer may be liable for bad faith if it:

Fails to attempt in good faith to settle claims when, under all the circumstances, it could and should have done so had it acted fairly and honestly toward its insured.
Makes material misrepresentations to the insured or any other person for the purpose of settling a claim on less favorable terms than those contemplated in the policy.
Fails to promptly settle a claim when liability is clear, simply to influence settlements under other parts of the policy.

Florida courts have consistently emphasized that insurers owe their policyholders a duty of good faith. As the Florida Supreme Court explained in Boston Old Colony Ins. Co. v. Gutierrez, 386 So. 2d 783 (Fla. 1980), an insurer must “exercise the same degree of care and diligence as a person of ordinary care and prudence should exercise in the management of his own business.”

In other words, your insurance company cannot put its own financial interests above your right to fair treatment.

Common Examples of Bad Faith Insurance Practices

Unreasonable Denial: Denying a claim without proper investigation or based on misleading interpretations of the policy.
Delay Tactics: Failing to promptly investigate or pay a claim when liability is clear.
Lowball Offers: Making settlement offers far below the reasonable value of a claim.
Failure to Defend: Refusing to provide a legal defense in a liability claim when the policy requires it.
Misrepresentation: Providing false or misleading information about coverage, exclusions, or policy limits.

These tactics are not just unfair — they are unlawful under Florida’s insurance code and case law.

The Civil Remedy Notice (CRN) Process

Before filing a bad faith lawsuit, Florida law requires policyholders to give the insurer notice and an opportunity to correct its behavior. This is done by filing a Civil Remedy Notice (CRN) with the Florida Department of Financial Services (DFS).

The CRN must identify the statute violated, the facts of the violation, and the insurer involved.
The insurer has 60 days to “cure” the violation by paying the claim in full or otherwise correcting its conduct.
If the insurer fails to do so, the policyholder gains the right to file a lawsuit for bad faith.

See Talat Enterprises, Inc. v. Aetna Cas. & Sur. Co., 753 So. 2d 1278 (Fla. 2000), where the Florida Supreme Court clarified that an insurer can avoid bad faith liability by fully curing within the 60-day statutory window.

Damages in Florida Bad Faith Insurance Claims

If an insurer is found liable for bad faith, the damages available go beyond the original policy limits. You may be entitled to:

The full value of the original claim (policy benefits owed).
Consequential damages caused by the insurer’s misconduct (e.g., additional property damage, credit issues, or health complications caused by delays).
Attorney’s fees and litigation costs under Fla. Stat. §627.428.
Punitive damages, in cases of willful, malicious, or reckless conduct (see State Farm Mut. Auto. Ins. Co. v. Laforet, 658 So. 2d 55 (Fla. 1995)).

This means that when an insurer acts in bad faith, the financial consequences can far exceed what it would have paid if it had simply honored its obligations.

First-Party vs. Third-Party Bad Faith in Florida

First-Party Bad Faith: When your own insurer refuses to pay your claim fairly (such as property damage, UM/UIM, or medical payments).
Third-Party Bad Faith: When an insurer fails to protect you from liability in a claim brought by someone else. For example, if your auto insurer refuses to settle a claim within policy limits and you are later hit with a judgment exceeding those limits.

Florida law recognizes both types of bad faith claims.

Key Florida Cases on Bad Faith

Boston Old Colony Ins. Co. v. Gutierrez, 386 So. 2d 783 (Fla. 1980) – Insurers must act as if handling their own business when defending and settling claims.
State Farm Mut. Auto. Ins. Co. v. Laforet, 658 So. 2d 55 (Fla. 1995) – Punitive damages are available where the insurer’s conduct was willful or reckless.
Talat Enterprises, Inc. v. Aetna Cas. & Sur. Co., 753 So. 2d 1278 (Fla. 2000) – The insurer may cure bad faith within the 60-day CRN window.
Berges v. Infinity Ins. Co., 896 So. 2d 665 (Fla. 2004) – Emphasized the fiduciary-like duty insurers owe to policyholders.

Why Choose Our Firm?

At the Law Offices of Adam G. Hill, we focus on standing up to insurance companies that refuse to play fair. We know the delay-and-deny tactics insurers use, and we have the experience to take them to task under Florida law.

Our firm:

Investigates insurance misconduct thoroughly.
Files and prosecutes Civil Remedy Notices to preserve your rights.
Negotiates aggressively with insurers.
Litigates bad faith cases in court, when necessary, to secure full compensation.

Frequently Asked Questions About Florida Bad Faith Insurance Claims

What is the time limit to file a bad faith insurance claim in Florida?

The statute of limitations for a bad faith claim in Florida depends on the type of claim:

Statutory bad faith claims (§624.155, Fla. Stat.) – Four years.
Common law third-party bad faith claims – Typically governed by the statute of limitations for contract actions, which is five years under §95.11(2)(b), Fla. Stat.

Because deadlines vary, it is critical to speak with an attorney as soon as you suspect bad faith.

Do I have to file a Civil Remedy Notice (CRN)?

Yes — for first-party statutory bad faith claims, Florida law requires you to file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services under §624.155(3), Fla. Stat. The insurer then has 60 days to fix the problem.

For third-party common law bad faith claims, a CRN is not required.

What damages can I recover in a bad faith lawsuit?

If successful, you may be entitled to:

The full value of your underlying claim (policy benefits owed)
Consequential damages (e.g., lost income, additional property damage caused by delays)
Attorney’s fees and costs (§627.428, Fla. Stat.)
Punitive damages in cases of willful or reckless misconduct (State Farm v. Laforet, 658 So. 2d 55 (Fla. 1995))

What’s the difference between first-party and third-party bad faith?

First-party bad faith: When your own insurance company mistreats you (for example, denying hurricane damage or undervaluing a UM/UIM claim).
Third-party bad faith: When an insurer fails to settle a liability claim against you within policy limits, exposing you to a judgment beyond your coverage (Boston Old Colony Ins. Co. v. Gutierrez, 386 So. 2d 783 (Fla. 1980)).

Can I sue my insurance company directly for bad faith?

Yes, but only after following the required steps. For statutory bad faith, you must first file a Civil Remedy Notice and allow the 60-day cure period to pass without resolution. Once that period expires, you may file a lawsuit in Florida state or federal court.

What are some signs my insurance company may be acting in bad faith?

They deny your claim without giving a clear reason.
They delay responses for weeks or months.
They ignore evidence you provided supporting your claim.
They pressure you into accepting a settlement that is clearly too low.
They misstate your policy coverage or exclusions.

If you experience any of these, it’s time to consult an attorney.

Take Action Against Insurance Bad Faith

Bad faith claims are complex and heavily litigated in Florida. Insurance companies have legal teams working to protect their profits — you deserve a lawyer who will fight just as hard to protect your rights.

Call us today for a free consultation or send a message through our Contact page and a member of our team will reach out promptly.