Florida Insurance Bad Faith

What Bad Faith Actually Means

A bad faith claim is not about the crash. It is about the insurer’s conduct in handling the claim — and it is a separate cause of action with its own rules.

An insurer generally owes a duty to handle claims fairly and honestly, and where a liability policy is involved, to act with due regard for the insured’s interests when deciding whether to settle within policy limits. Conduct that may raise the issue includes:

• Refusing to settle within policy limits where liability is clear and the damages plainly exceed those limits, exposing the insured to a judgment above them.
• Unreasonable delay in investigating, evaluating, or paying a claim.
• Failing to investigate adequately before denying.
• Denying without a reasonable basis, or giving shifting reasons.
• Failing to explain a denial or the basis for a valuation.
• Misrepresenting policy terms or coverage.

Bad faith is not simply disagreeing about value. An insurer is entitled to dispute a claim and to value it differently. The question is whether its handling fell below the standard the law requires.

This is general information, not legal advice. Florida statutes are amended and courts reinterpret them. Section numbers are given so you can check the current text, and how any rule applies depends on facts a general page cannot assess. Confirm your position with an attorney.

The Civil Remedy Notice

Florida requires a specific procedural step before a statutory bad faith claim can be brought, and it is easy to get wrong.

Under Fla. Stat. § 624.155, a claimant must file a Civil Remedy Notice with the Department of Financial Services and serve it on the insurer, identifying the specific statutory provisions violated, the facts relied on, and what the insurer must do to cure.

The insurer then has a cure period — commonly 60 days — during which it can resolve the matter and avoid a bad faith action. If it cures, the statutory claim generally does not proceed. If it does not, the claim may go forward.

Getting the notice right matters. One that fails to identify the violations or the facts with adequate specificity can be found deficient, and the defect is usually raised later rather than corrected early.

Published By

Shiner Law Group, P.A.

Founded by David I. Shiner, Esq. · AV Preeminent® rated · Florida Bar member since 2002

Shiner Law Group was founded by David I. Shiner, Esq., a Nova Southeastern University law graduate, a member of The Florida Bar since 2002, and AV Preeminent® rated by Martindale-Hubbell. The firm represents injured people across Florida from offices in Boca Raton, West Palm Beach, Fort Lauderdale, Fort Pierce, Orlando, Wellington, and Belle Glade, and handles truck accident cases on contingency: free consultations, and no fee unless there is a recovery.

The firm works to keep this information current and consistent. Spotted something wrong? Email joseph@shinerlawgroup.com and we will fix it. About this site →

Why It Arises in Truck Cases

Truck claims produce bad faith issues more often than ordinary vehicle claims, for structural reasons:

• Layered policies. Primary and excess insurers may disagree about who should pay, and a claimant caught between them experiences delay that neither insurer regards as its own fault.
• Multiple defendants and insurers, each with an incentive to wait for the others to move first.
• Catastrophic injuries, where damages clearly exceed a primary policy limit and the decision whether to tender that limit becomes consequential.
• Clear liability with disputed damages, the classic setting for a refusal to settle within limits.
• Coverage disputes, including denials that the MCS-90 endorsement may answer — see Trucking Insurance.

The practical significance for an injured person is that a bad faith exposure can change an insurer’s calculation. Where a carrier’s insurer refuses a reasonable within-limits demand and a judgment later exceeds those limits, the insurer’s own exposure is no longer capped by the policy.

What to Do

1. Document every interaction with the insurer — dates, names, what was asked, what was offered, and what reason was given.
2. Keep all correspondence, including emails and letters, and note when responses were slow.
3. Do not assume delay is normal. It sometimes is; sometimes it is not, and the record is what distinguishes them.
4. Get advice before filing anything — a Civil Remedy Notice has specific content requirements and a deficient one causes problems later.
5. Understand this is a separate claim from the underlying injury case, with its own timing.
6. Note the deadline on the underlying claim. Florida’s limitations period for most negligence claims arising after March 24, 2023 is two years. Claims involving a government entity carry far shorter pre-suit notice requirements. See Florida’s Truck Accident Deadline.

Insurance Bad Faith FAQ