Allegations of extra-contractual liability under insurance policies commonly referred to, as “bad faith” practices are unique to breach of contract actions against insurance companies. Under Florida law, insurers are obligated to act with due care for the interest of their insureds. A breach of contract action would seek to recover damages for benefits under the policy, which the insurer has either denied or limited in some way. A bad faith suit takes the allegations to a new level, by suggesting the insurer acted intentionally or negligently in the manner in which claims were resolved. Bad faith suits are based upon Florida common law, as well as Florida Statutes, including Section 624.155, Florida Statutes.
As a general proposition, bad faith suits are premised upon the obligation of the insurer to pay when all conditions under the policy would require an insurer exercising good faith and fair dealing towards its insured to pay. This obligation on the part of insurer requires the insurer to timely evaluate and pay benefits owed on the insurance policy. These extra-contractual claims can create potential exposure of insurance companies when they are responding to claims filed by their insureds, or also when their insureds are the subject of lawsuits filed by others. These cases are exceptionally complicated, and require the attention of lawyers with experience from the perspective of both the insurer and the insureds in these disputes. Whether the dispute relates to property damage, disability claims, or the failure of an insurer to defend a lawsuit under liability coverage, these cases are time sensitive, and require technical knowledge of the law.
To learn more about bad faith suits or extra-contractual claims against insurers, please contact Corless Zinober at 813-258-4998.
