Florida disability insurance is supposed to provide income replacement when an illness or injury prevents someone from working. When an insurer fails to honor that obligation, whether by denying a valid claim, delaying payment without justification, or misrepresenting policy terms to avoid paying, that conduct may constitute insurance bad faith. For Miami residents dealing with a disability insurer that is not meeting its obligations, understanding what bad faith means under Florida law and what remedies exist is an important first step.
What Insurance Bad Faith Means Under Florida Law
Florida Statutes Section 624.155 establishes the framework for civil actions against insurance companies for bad faith conduct. An insurer acts in bad faith when it fails to settle or pay a claim in good faith, fails to promptly investigate a claim, attempts to settle for less than the claim is worth, or otherwise fails to deal fairly with the policyholder. The statute applies to first-party disability claims and allows the insured to seek additional damages beyond the policy benefits owed.
Before filing a bad faith lawsuit in Florida, the policyholder must first file a Civil Remedy Notice with the Florida Department of Financial Services, identifying the specific conduct that constitutes bad faith and giving the insurer 60 days to cure the violation. This notice requirement is a prerequisite to a bad faith claim under Florida law. A Miami insurance and disability lawyer prepares the Civil Remedy Notice correctly and confirms it identifies all applicable bad faith conduct with the specificity Florida courts require.
How Bad Faith Manifests in Florida Disability Insurance Cases
Disability insurers engage in several forms of conduct that can give rise to bad faith claims under Florida law:
- Denying a claim without conducting a reasonable investigation into the claimant’s medical condition and work limitations
- Relying on a paper review by a physician who never examined the claimant, in the face of contrary opinions from treating physicians
- Terminating benefits mid-claim based on video surveillance that is presented selectively or out of context
- Delaying payment beyond reasonable timeframes without providing a legitimate explanation
- Misrepresenting the terms of the policy to justify a denial that the policy language does not actually support
- Failing to acknowledge or respond to communications within the timeframes Florida’s prompt payment requirements establish
Each of these patterns involves the insurer prioritizing its own financial interests over its contractual obligation to the policyholder. Bad faith law exists precisely to deter these tactics.
What Remedies Are Available for Insurance Bad Faith in Florida
A successful bad faith claim in Florida allows the policyholder to recover not just the insurance benefits that were wrongfully denied, but additional damages for the harm caused by the bad faith conduct itself. Those additional damages can include attorney’s fees, consequential damages caused by the insurer’s improper conduct, and in appropriate cases, punitive damages when the insurer’s behavior was particularly egregious.
Needle & Ellenberg, P.A. is a Miami personal injury and medical malpractice firm. Andrew Needle is Board Certified in Civil Trial Law by The Florida Bar and has been named “Lawyer of the Year” by Best Lawyers in America for medical malpractice. Andrew Ellenberg is rated AV Preeminent by Martindale-Hubbell. Free consultations are available.
Pursuing a Bad Faith Claim Against a Miami Disability Insurer
If your Florida disability insurer has denied, delayed, or improperly terminated your benefits in Miami, speaking with a Miami insurance and disability lawyer is the most direct way to evaluate whether your claim involves bad faith conduct and what remedies may be available under Florida law.