You pay your premiums for years on the understanding that, if the worst happens, your insurer will be there. So when a valid claim is denied, lowballed, or dragged out with no real explanation, it can feel like a betrayal, and it usually lands at the worst possible time, when you're already dealing with a loss. Florida law does not allow insurance companies to treat the people they insure that way. When an insurer handles a claim in bad faith, you may have a claim against the insurer itself.

What Is Insurance Bad Faith?

Insurers owe a duty to act in good faith and deal fairly with the people they cover. Bad faith is what happens when a company breaks that duty by unreasonably denying, delaying, or underpaying a claim it should have honored, or by failing to settle a claim against you within your policy limits when it had the chance. It is a recognized legal wrong in Florida, separate from the original claim, and it can expose the insurer to responsibility well beyond the policy amount.

Common Examples of Bad Faith

• Denying a valid claim without a reasonable investigation or a clear explanation
• Unreasonably delaying payment or a coverage decision
• Offering far less than a claim is honestly worth
• Misrepresenting policy language or the coverage that applies
• Failing to settle a liability claim within policy limits, exposing you to a judgment above your coverage
• Ignoring communications or failing to respond within a reasonable time

First-Party and Third-Party Bad Faith

First-Party Bad Faith

This is when your own insurer mishandles a claim you filed under your policy, such as a property, health, PIP, or uninsured motorist claim. Instead of paying what it owes, the company unreasonably fights, delays, or underpays.

Third-Party Bad Faith

This arises when your liability insurer fails to protect you, most often by refusing a reasonable opportunity to settle a claim against you within your policy limits. If a jury later returns a verdict above those limits, you can be left personally exposed for the excess, and the insurer that gambled with your money may be responsible for it.

Florida's Bad Faith Process

Florida has specific steps that apply before a statutory bad-faith case can move forward, including a formal civil remedy notice to the insurer and the state, and a window for the insurer to fix the problem. Timing, documentation, and how the claim was handled from the start all matter, which is why it helps to involve a lawyer early rather than after deadlines have passed.

Compensation in a Bad Faith Case

Depending on the facts, a bad-faith claim can recover more than the benefits originally owed. It may include the full amount of a judgment that exceeds the policy limits, other losses caused by the insurer's conduct, and in some cases attorney's fees and, for especially egregious behavior, punitive damages.

Holding Insurers Accountable

Insurance companies pay closest attention to lawyers who are prepared to take them to trial. Todd Poses and Adam Boumel built Poses Boumel on exactly that reputation, and we bring the same trial-ready approach to insurance disputes that we bring to any case. Most recently, we recovered $500,000 in an insurance dispute. You work directly with your attorneys, and we hold insurers to the promises they made when they sold the policy.

Contact the Insurance Bad Faith Attorneys at Poses Boumel Today

It costs nothing to talk to us. Poses Boumel represents policyholders and injured people throughout Florida from our office in downtown Miami, and we serve clients in English and Spanish. Call 305-577-0200 during our listed office hours or leave a message any time, or reach us through the contact form on our website. Your consultation is free and confidential, with no obligation.