When you’re injured in an accident, you trust your insurance company to have your back. But what happens when that trust is betrayed? Picture this: you’ve suffered a severe injury and your insurance policy should cover your medical expenses. Yet, your insurer drags its feet, denying or delaying your claim. This isn’t just a frustrating inconvenience; it’s a betrayal of the very promise that was supposed to protect you in your time of need. This is where Florida’s Bad Faith insurance laws come into play, ensuring that insurers act fairly and honestly in handling your claims.
These laws are crucial for safeguarding consumers against insurers who fail to meet their obligations. When insurers refuse to settle claims in good faith, they are not just hurting you—they’re undermining the integrity of the entire system designed to offer protection. At McPherson & Thomas, P.A., we are dedicated to fighting for your rights when insurers fall short.
Understanding Florida’s Bad Faith Insurance Laws
According to Florida Statutes §624.155, insurance companies must act in good faith when settling claims. This means they must handle claims fairly and honestly, considering the interests of their insured. So, why is the insurance industry pushing so hard against a law that simply requires fair treatment?
Take the following hypothetical scenario: John Doe is involved in a serious car accident caused by Jane Doe, who runs a red light. John suffers severe injuries, including a fractured femur, and racks up $75,000 in medical bills. Jane’s insurer, Acme Insurance Company, has a $100,000 coverage limit for bodily injury. John’s attorney submits all medical records and demands the policy limit, agreeing to release Jane from further liability if paid. However, Acme refuses to settle. Frustrated, John sues, and the jury awards him $675,000. Without Bad Faith laws, Acme would only pay $100,000, leaving Jane liable for the remaining $575,000. Bad Faith statutes ensure that if an insurer acts unfairly or dishonestly, they can be held responsible for the full amount of damages.
The Reality of Bad Faith Claims
Insurance companies argue that the Bad Faith statute is unfair, claiming it exposes them to excessive claims through tactics set up by trial lawyers. They say that unreasonable deadlines and conditions create a “bad faith crisis.” However, these claims don’t reflect the actual legal environment:
- Rare Bad Faith Trials: Bad faith cases are not common. To win, the plaintiff must prove in a separate action that the insurer acted unreasonably after winning a verdict that exceeds the policy limit.
- Legal Protections for Insurers: Florida law protects insurers from being found in bad faith if they’ve been set up by plaintiffs’ attorneys. Unreasonable behavior by attorneys does not equate to bad faith.
- Focus on Insurer Behavior: The law evaluates the insurer’s actions, not the plaintiff’s. Insurers are expected to act in good faith and protect their insured when reasonable. It’s not unreasonable to expect them to fulfill their duty.
So, why does the insurance industry continually push to weaken Bad Faith laws? Without these laws, insurers could use unethical practices to delay or deny settlements without fear of repercussions. The high cost of filing and serving summonses could coerce injured parties into accepting less than their claims are worth. If a jury awards more than the policy, the insurer’s negligence leaves the insured responsible for the excess amount.
Why Choose Us for Your Insurance Bad Faith Claim?
At McPherson & Thomas, P.A., we have a deep understanding of Florida’s Bad Faith insurance laws and a proven track record of holding insurers accountable. With over 25 years of experience, Attorney Scott McPherson brings a unique perspective with his background as a paramedic, ensuring we fully comprehend the impact of your injuries. Attorney Ian Thomas’s extensive legal training and commitment to client service mean your case will be handled with the utmost dedication and skill.
We are committed to ensuring that insurers fulfill their obligations to you. If you’ve been wronged by an insurance company, we can help you fight for the compensation you deserve. Contact us today at (727) 848-8892 or visit our contact form.
