At Gonzalez & Cartwright, P.A., we understand that being denied the benefits of your insurance policy can be an overwhelming and distressing experience. Insurance is meant to provide a safety net during some of the most challenging times in life—whether it’s recovering from a natural disaster, covering medical bills, or defending against liability claims. Unfortunately, some insurance companies prioritize profits over their promises, engaging in unfair practices that leave policyholders vulnerable. These actions, known as “insurance bad faith,” breach the insurer’s legal and ethical obligations to its policyholders. At Gonzalez & Cartwright, P.A., our dedicated team of Florida insurance bad faith claims lawyers is committed to helping individuals and businesses who have been wronged by their insurers. We fight to hold these companies accountable and ensure you receive the compensation you deserve.
What Is Insurance Bad Faith?
Insurance bad faith refers to an insurer’s failure to uphold its legal duty to act fairly and in good faith toward its policyholders. When you purchase an insurance policy, you are entering into a contract that requires the insurer to fulfill its obligations in exchange for the premiums you pay. This includes processing claims in a timely and reasonable manner, investigating claims thoroughly, and paying out valid claims as specified in the policy.
However, some insurers act in bad faith by denying legitimate claims, delaying payments, or misrepresenting the terms of a policy. This type of misconduct goes beyond a simple mistake or clerical error—it involves deliberate or negligent actions that put the policyholder at an unfair disadvantage.
Examples of insurance bad faith include:
- Denying a claim without conducting a proper investigation.
- Offering a settlement that is far below the value of the claim.
- Delaying payment for an extended period without justification.
- Misrepresenting policy terms to avoid paying a claim.
At Gonzalez & Cartwright, P.A., we understand the complexities of insurance law and are here to protect your rights. Whether you’re dealing with a denied claim or suspect that your insurer is acting unfairly, we have the knowledge and resources to help you navigate these challenges.
Types of Insurance Bad Faith Claims
First-Party Bad Faith Claims
First-party insurance claims involve disputes between the policyholder and their own insurance company. This occurs when the insurer acts unreasonably or unfairly in processing or paying out a claim. Examples of first-party bad faith include:
Wrongful Denial of Benefits
When an insurer denies a claim that is clearly covered under the policy, citing invalid or non-existent reasons. For example, if your homeowner’s insurance policy covers damage caused by a storm, but your insurer denies the claim by claiming the damage was “pre-existing,” this may constitute bad faith.
Delayed Claim Processing
An insurer might delay processing a claim unnecessarily, causing financial hardship for the policyholder. Deliberate delays can be a tactic to frustrate claimants into accepting lower settlements.
Underpayment of Claims
Offering a settlement that is significantly lower than the true value of the claim, often without adequate explanation or justification.
Third-Party Bad Faith Claims
Third-party bad faith claims arise when an insurance company fails to properly defend or indemnify a policyholder in a claim brought by another party. Insurers have a duty to protect their policyholders from liability within the limits of the policy. Examples of third-party bad faith include:
Failure to Settle Within Policy Limits
If an insurer refuses to settle a third-party claim for an amount within the policy limits, and the case goes to trial resulting in a higher judgment, the policyholder may be left personally liable for the excess amount. This is a classic example of bad faith.
Delaying Settlements
Unreasonable delays in settling third-party claims can expose the policyholder to legal risks, including lawsuits.
Misrepresentation of Policyholder Liability
An insurer may misrepresent the level of coverage or the policyholder’s liability to avoid paying out claims.
Coverage Disputes and AOP Insurance Litigation
Coverage disputes occur when insurers and policyholders disagree over the interpretation of policy terms. A common area for disputes is AOP (All Other Perils) coverage, which is designed to protect against risks not explicitly listed in the policy. Insurers may deny claims based on vague or ambiguous language in the policy, or they may fail to investigate properly.
Our team at Gonzalez & Cartwright, P.A., has extensive experience handling coverage disputes and AOP litigation. We work to ensure that your policy is interpreted in a way that aligns with your rights and the insurer’s obligations.
Common Bad Faith Practices
Insurance bad faith manifests in various forms, many of which are deliberate attempts by insurers to minimize payouts. These practices can include:
Claim Denial Practices
Insurers may deny claims without providing valid reasons or without conducting a proper investigation. For instance, an insurer might claim that a loss is excluded under the policy when no such exclusion exists.
Breach of Insurance Contract
This occurs when the insurer fails to uphold the terms of the policy. For example, refusing to pay a valid claim or failing to provide a promised defense in a liability lawsuit.
Intentional Misrepresentation
Insurers might misrepresent the terms of the policy or the nature of the coverage to avoid paying a claim. This is often seen when insurers provide misleading explanations for denials.
Failure to Investigate Claims
Insurers have a legal duty to investigate claims promptly and thoroughly. A failure to do so can result in wrongful denials or delays.
Deliberate Delays
By dragging out the claims process, insurers may attempt to frustrate policyholders into accepting reduced settlements or abandoning their claims altogether.
Legal Remedies for Insurance Bad Faith
Policyholders who are victims of bad faith insurance practices have several legal options to seek compensation. The goal of these remedies is to address the harm caused by the insurer’s misconduct and to deter similar behavior in the future. Common remedies include:
Compensatory Damages
These damages cover the financial losses suffered by the policyholder as a result of the insurer’s bad faith actions. This may include the value of the denied claim, out-of-pocket expenses, and damages for emotional distress.
Punitive Damages
In cases of particularly egregious misconduct, courts may award punitive damages. These are intended to punish the insurer and deter similar behavior in the future.
Recovery Beyond the Denied Claim
If the insurer’s bad faith caused additional financial harm, such as legal expenses or lost business opportunities, the policyholder may be entitled to recover these damages as well.
Filing a Bad Faith Insurance Claim
If you suspect your insurer is acting in bad faith, filing a claim requires careful preparation to ensure your case is as strong as possible. Steps include:
- Review Your Policy: Understand your coverage, exclusions, and the obligations your insurer has under the policy. This will help you determine whether the insurer is in breach of contract.
- File a Complaint With Your Insurer: Provide written notice of your concerns, including specific details about the claim and the insurer’s actions. Keep a record of this communication.
- Document the Insurer’s Behavior: Keep detailed records of delays, denials, or any other behavior that seems unreasonable or unfair.
- Contact a Bad Faith Attorney: An experienced attorney can help you navigate the claims process, gather evidence, and negotiate with the insurer on your behalf.
- File a Lawsuit, If Necessary: If the insurer refuses to resolve the issue, your attorney can help you file a lawsuit to recover damages.
Our Florida insurance bad faith claims lawyers are here to guide you through every step of the process, ensuring your rights are protected and your claim is handled fairly.
How to Prove Insurance Bad Faith
Proving bad faith involves demonstrating that the insurer acted unreasonably or with malicious intent. This can be a complex process, but Gonzalez & Cartwright, P.A. is equipped to handle every aspect of your case. Steps include:
- Gathering Evidence: Documentation is critical in bad faith cases. This includes denial letters, emails, claim forms, and records of communication with the insurer.
- Examining Insurer Conduct: Analyzing whether the insurer’s actions deviated from standard industry practices. This may involve reviewing how similar claims were handled by the insurer.
- Consulting Experts: Expert testimony can be instrumental in proving that the insurer failed to meet its obligations under the policy.
- Identifying Legal Violations: Determining whether the insurer violated state or federal laws governing insurance practices.
Why Choose Gonzalez & Cartwright, P.A.?
Choosing the right law firm to handle your insurance bad faith case is a critical decision. At Gonzalez & Cartwright, P.A., we bring unparalleled experience, dedication, and expertise to every case we handle. Here are the reasons why clients consistently trust us to fight for their rights against powerful insurance companies:
Extensive Experience in Insurance Law
At Gonzalez & Cartwright, P.A., our attorneys have decades of combined experience in handling complex insurance disputes, including bad faith claims. We have successfully represented policyholders in cases involving wrongful claim denials, delayed payments, underpayments, and coverage disputes. This depth of experience allows us to anticipate insurer tactics, develop effective strategies, and secure favorable outcomes for our clients.
Proven Track Record of Success
We are proud of our history of achieving significant results for our clients. From recovering substantial compensation to securing punitive damages in cases of egregious misconduct, our firm has a proven record of holding insurers accountable. Insurance companies know our reputation for tough, effective advocacy, and they take us seriously when we represent policyholders.
Client-Centered Approach
At Gonzalez & Cartwright, P.A., we understand that every case is unique. We take the time to listen to your story, understand your specific needs, and tailor our legal strategies accordingly. Our goal is not only to win your case but also to provide you with peace of mind during a stressful and uncertain time. We prioritize clear communication, keeping you informed at every stage of your case so you always know where you stand.
Strong Advocacy Against Insurance Companies
Insurance companies have vast resources and legal teams dedicated to protecting their profits. We level the playing field by providing aggressive and skilled representation. Our attorneys are not intimidated by big insurance firms; instead, we thrive on holding them accountable for their misconduct and ensuring our clients receive the justice they deserve.
Multilingual Services for Diverse Communities
As a firm committed to serving our community, we offer services in both English and Spanish. We believe that language should never be a barrier to accessing high-quality legal representation. Whether you’re a native English speaker or more comfortable communicating in Spanish, our team is here to help you understand your rights and navigate the legal process with confidence.
Comprehensive Understanding of Insurance Tactics
We know how insurance companies operate. From delaying claims to misrepresenting policy terms, insurers often use unfair tactics to deny or minimize payouts. Our attorneys are experts at spotting and countering these strategies. We build strong cases by gathering evidence, consulting industry experts, and leveraging our in-depth knowledge of insurance law.
Contact Gonzalez & Cartwright, P.A.’s Florida Insurance Bad Faith Claims Lawyers Today
If you believe your insurance company has acted in bad faith, Gonzalez & Cartwright, P.A. is here to help. Our Florida insurance bad faith claims lawyers offer free consultations to evaluate your case and explain your options. Don’t let your insurer take advantage of you—contact Gonzalez & Cartwright, P.A. today.