When you purchase insurance—whether it’s for your home, car, health, or business—you’re buying peace of mind. You trust that your insurance company will stand by you in times of need. Unfortunately, that’s not always the case. Sometimes, insurers wrongfully deny claims or unfairly delay payments. When this happens, the law provides a remedy through what is known as bad faith litigation.
Insurance companies have a legal obligation to treat policyholders fairly and act in good faith. That means they must thoroughly investigate claims, communicate clearly and promptly, and pay out valid claims without unreasonable delay. When an insurer violates these duties, it may be acting in bad faith.
Some common examples of bad faith include:
- Unreasonable denial of a valid claim
- Delaying claim processing without justification
- Failing to properly investigate a claim
- Offering a settlement far below what a claim is worth
- Misrepresenting policy language or coverage limits
In Florida and many other states, insurance companies that act in bad faith can be held accountable in court—and not just for the amount of the original claim. Courts may award additional damages, including compensation for emotional distress, attorney’s fees, and sometimes even punitive damages.
First-Party vs. Third-Party Bad Faith Litigation
There are two primary types of bad faith insurance claims.
First-Party Bad Faith: This occurs when your own insurance company fails to deal with you fairly. For instance, if you file a claim for hurricane damage to your home and your insurer denies it without a valid reason, you may have a first-party bad faith claim.
Third-Party Bad Faith: This arises when an insurance company fails to properly defend or settle a claim against you. For example, if someone sues you after a car accident and your insurer refuses a reasonable settlement offer—exposing you to a larger judgment—you may have grounds for a third-party bad faith claim.
How Can You Prove Bad Faith?
Proving bad faith isn’t always straightforward. You must show that the insurance company didn’t just make a mistake or a poor business decision—it knowingly or recklessly acted unfairly or dishonestly. This typically involves:
- Documenting all communications with your insurer
- Reviewing your policy for coverage details
- Working with experts or legal counsel to analyze how the claim was handled
An experienced bad faith attorney can help you gather evidence and navigate the complex legal standards that apply in your case.
Why You Need Legal Representation
Insurance companies are backed by large legal teams and have extensive resources at their disposal. Going up against them without proper representation can be overwhelming. At Probinsky and Cole, we are committed to standing up for individuals and families who’ve been mistreated by their insurers. We understand the tactics insurance companies use to avoid paying claims, and we know how to fight back.
Our team has decades of experience handling insurance disputes and bad faith litigation throughout Florida. Whether you’re dealing with a denied property damage claim, delayed auto insurance payments, or an underpaid settlement, we’re here to help you get the compensation you deserve.
If you believe your insurance company has acted in bad faith, don’t wait. The sooner you speak with a qualified attorney, the better your chances of holding your insurer accountable. Contact Probinsky and Cole today for a free consultation and let us review your case. Your rights matter. Let us help protect them.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. Laws and regulations surrounding insurance and bad faith litigation may change, and the application of these laws can vary depending on specific facts and circumstances. For advice regarding your individual situation, please contact an experienced attorney. Reading this blog does not create an attorney-client relationship with Probinsky and Cole.
