Can I Sue For a Bad Faith Insurance Claim?

When a person is injured in an accident, they will most likely be going through an insurance company in order to get their medical bills and other expenses paid for. Florida follows a no-fault insurance system, which means that a person will go through their own insurance company for compensation, regardless of fault.

Most people think that their insurance company will automatically pay them what is fair and right. Unfortunately, this isn’t always the case. Insurance companies will typically try to avoid paying out anyone they can, including their own policyholders. When your insurance company refuses to pay you what you deserve for a claim, this means they are acting in bad faith.

Here, we outline the two different categories of bad faith insurance in Florida and what to do if your insurance company is acting in bad faith.

First-Party Bad Faith Claims

First-party insurance protects the actual policyholder from damages sustained in an accident. If the insurance company does not pay the injured party compensation for their losses, a first-party insurance claim will be made against the insurance company.

Florida law establishes that an individual can pursue a bad faith insurance claim if there was no “attempt in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fair and honestly towards its insured and with due regard for her or his interest.”

Third-Party Bad Faith Claims

Third-party insurance is different in that it covers the policyholder in the event they are liable for damages in an accident. For example, if someone sues you after an accident, your insurance company should cover the cost under certain circumstances.

In addition, Florida law says that the insurance company must defend their policyholder during the litigation process. If the insurance company fails to settle a claim fairly (in good faith), they are held liable for excess damages being pursued against the policyholder.

Protecting Your Rights to Compensation

The personal injury attorneys at Weinstein & Scharf have over 70 years of combined experience helping injury victims in Coral Springs obtain the maximum compensation they can recover. We know how local courts work and what actions to take if your insurance company acts in bad faith.

Get seasoned advocates on your side of the court. Contact Weinstein & Scharf at (954) 482-4534 if you need assistance pursuing a bad faith insurance claim.

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