You purchase insurance in order to rest assured that if some accident or catastrophic event occurs, your insurance will cover you for any damages and property losses. If you file an insurance claim after an accident, or another event covered by your insurance, a claim denial by the company you’ve paid premiums to is an insult. A claim denial could also be incredibly damaging to you in this financially precarious situation.
What the law says
It is vital that you know what your rights are when it comes to bad faith insurance claims. As a policyholder, you have certain legal protection under Florida state law to prevent or remedy bad faith insurance claims. In Florida, there are generally two forms of insurance claims recognized for ‘bad faith’ actions: first-party and third-party claims. In a first-party claim, an insurer denies the policyholder’s claim. The Unfair Insurance Trade Practices Act defines what constitutes a bad faith action by an insurer in Florida. These actions could include:
- Failing to provide a reasonable investigation into a claim before its denial
- Refusing to provide fair reasoning for a claim denial
- Neglecting to communicate with the insured person or respond in a prompt manner
Civil remedy notice
A Florida policyholder can seek out a first-party bad faith claim against an insurer after preparing a ‘civil remedy notice.’ This form is made available through the Florida Department of Financial Services.
Holding insurance companies accountable
After a car accident, your injuries could require years of rehabilitation and treatment that contribute to lost wages and personal suffering. You may need the compensation you’re entitled to for years to come. Contact a lawyer with experience in insurance law and bad faith insurance actions to hold insurers accountable for their misconduct.