Insurers owe the people they cover a duty to handle claims fairly, and that duty gets tested when a settlement demand within policy limits goes unanswered. If a verdict then lands above those limits, Florida law may let the injured person pursue the insurer itself. Here, we explain how those bad-faith claims work and what has to happen first.
Florida Law Allows Claims Against Insurers That Fail to Settle
Under Section 624.155 of the Florida Statutes, any person damaged by an insurer’s violation may bring a civil action against it. One listed violation is not attempting in good faith to settle claims when, under all the circumstances, the insurer could and should have done so.
In a crash case, the dispute arises when the at-fault driver’s insurer rejects a reasonable demand within the policy limits and a verdict later exceeds them. The driver is left facing the difference, which is why the insurer’s earlier decisions get a close look.
A Written Notice Has to Come First
Before anyone can sue, the statute requires 60 days’ written notice of the violation to the Department of Financial Services and the insurer. The notice goes on a form the department provides and has to state the specific statutory language the insurer allegedly violated, along with the facts behind the claim.
The insurer gets time to fix the problem. If it pays the damages or corrects the circumstances within 60 days after receiving notice from the department, no action can be brought. Records of every exchange with insurance adjusters can later show whether the insurer acted fairly during that period.
Payment Within 90 Days Can Bar a Claim
For liability claims, the statute bars a bad-faith action if the insurer tenders the lesser of the policy limits or the amount the claimant demanded within 90 days after receiving actual notice of a claim. The claim has to come with enough evidence to support its amount.
That timeline gives a well-built demand real weight. Medical records, bills, wage documentation, and photographs all count as evidence, and a Fort Lauderdale car accident lawyer can organize that material so the amount demanded is clearly supported. We assemble these packages with the deadline in mind, because the demand sets the terms the insurer is later judged against.
Complete medical records also let the insurer evaluate the claim quickly, which leaves less room to argue that it lacked information. Gaps in the treatment history can have the opposite effect.
Negligence Alone Does Not Establish Bad Faith
The statute states that negligence alone is insufficient to constitute bad faith. Carelessness by itself doesn’t meet the standard, so a claim has to point to conduct that falls short of fair and honest dealing with the insured.
The duty runs both ways. The claimant side must also act in good faith in furnishing information, making demands, setting deadlines, and attempting to settle, and a trier of fact may reduce the damages awarded against the insurer if that duty was not met. Thorough injury documentation helps show that the insurer received complete information.
Records worth keeping include:
- The written demand, with its deadline and the evidence attached
- Dates and content of every insurer response
- Policy limits disclosures
- Medical bills and treatment records sent to the insurer
- Notes of phone conversations and emails with adjusters
Serious Injuries Make Policy Limits Matter More
Bad-faith disputes surface when damages exceed the coverage available, and severe injuries are where that gap opens. Future care, lost income, and long recoveries can push a claim past the limits, which is the situation a Fort Lauderdale catastrophic injury lawyer weighs when valuing a claim.
Riders hurt in motorcycle crashes can face the same gap between damages and coverage, and a Fort Lauderdale motorcycle accident lawyer weighs those limits alongside the medical needs that follow. We look at both sides of that gap before any demand is made.
Our Attorneys Bring Courtroom and Business Experience
At Loshak Law PLLC, Brandon F. Loshak leads the firm and focuses his practice on personal injury, business transactions, real estate, and land use and zoning. He is admitted in Florida and Texas and holds an AV Preeminent rating from Martindale-Hubbell. Of Counsel Aron Gibson has tried more than 60 jury trials and serves as president of the Broward County Trial Lawyers Association.
Early Records Shape What Comes Later
Bad-faith claims depend on what the insurer knew and when, so the paper trail built in the first weeks after a crash carries weight months later. Anyone in the Fort Lauderdale area who is dealing with an insurer that won’t settle fairly can reach out to us to talk through the options.
