In a landmark case from 2012, the Florida Supreme Court held that when suing insurers for bad faith, a policyholder must first sue the insurance company for violating the terms of the insurance agreement, and only after winning the claim is the person permitted to sue the insurer for bad faith. This can be a long and arduous process.
What motivates bad faith?
Insurance companies, like other businesses, are concerned about their bottom line. In pursuit of this goal, insurance companies employ large teams of professionals who are dedicated to finding strategies to reduce payouts and minimize claims. The use of illegal strategies to minimize or avoid claims is known as insurance bad faith.
Examples of insurance bad faith
Insurance bad faith includes:
Using delay tactics to try and force policyholders to give up their claims
Not telling policyholders a claim is being denied
Not citing the specific policy provision that serves as the basis for the denial of a claim
Pressuring policyholders to accept a low settlement, which may include pressuring them to accept a settlement offer before they know the full extent of their injuries
Insurance companies regularly employ tactics aimed at preventing policyholders from receiving the compensation they deserve.