{"id":888650,"date":"2016-05-11T09:45:27","date_gmt":"2016-05-11T15:45:27","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=888650"},"modified":"2016-05-11T09:45:27","modified_gmt":"2016-05-11T15:45:27","slug":"wrongful-denial-of-insurance-coverage-in-fl-how-do-bad-faith-claims-work","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/wrongful-denial-of-insurance-coverage-in-fl-how-do-bad-faith-claims-work\/","title":{"rendered":"Wrongful denial of insurance coverage in FL: how do bad faith claims work?"},"content":{"rendered":"

Charles B. Jimerson and Jennifer Proscia | Jimerson & Cobb P.A. | May 4, 2016<\/p>\n

When you purchase an insurance policy, your expectation is that you will be covered in unanticipated circumstances.\u00a0 However, if your insurer ends up denying your coverage for a legitimate claim filed under a valid policy, the insurer might be acting in \u201cbad faith<\/a>\u201d and you may be able to bring a claim against the insurance company. An\u00a0insurer\u2019s\u00a0wrongful\u00a0denial\u00a0of\u00a0coverage\u00a0constitutes a breach of contract and an insurer that denies\u00a0coverage\u00a0on a mistaken but sincere belief that\u00a0coverage\u00a0does not exist will bear the risk of consequences.<\/p>\n

Where the insurer fails or refuses to defend a claim against its\u00a0insured\u00a0that is covered under a valid policy, in the absence of any breach from the insured\u00a0releasing the insurer from liability, the\u00a0insured\u00a0can take whatever steps are essential to defend itself from the claim such as entering into a settlement agreement.\u00a0 Consequently, upon breach of the insurance contract, the insurer will not be permitted to rely upon the contractual provision proscribing the insured from settling the claim with a responsible party in order to relieve itself from liability.\u00a0\u00a0Gallagher v. Dupont<\/em>, 918 So.2d 342 (Fla. 5th DCA 2005).\u00a0 However, merely because an insurer denies a claim or declines to pay an amount demanded by the claimant does not automatically result in a finding of bad faith<\/a>. The insured individual must still establish that the actions of the insurer were actually made in bad faith.\u00a0Dadeland Depot, Inc. v. St. Paul Fire Ins. Co.<\/em>, 945 So.2d 1216 (Fla. 2006).<\/p>\n

The standard for evaluating bad faith claims<\/a> is whether the insurer acted fairly and honestly toward its insured with due regard for the insured\u2019s interests.\u00a0General Star Indem. Co. v. Anheuser-Busch Co.<\/em>, Inc. 741 So.2d 1259 (Fla. 5th DCA 1999).\u00a0 A court will determine whether an insurer has acted in bad faith in handling claims under a totality of the circumstances standard.\u00a0 As such, all of the circumstances involved in the denial of a claim should considered when determining whether bad faith exists.\u00a0 An insurer faced with coverage disputes will be evaluated on:<\/p>\n