Addressing Common Questions Small Businesses Have About Insurance Bad Faith Claims
Bad faith insurance claims are a very intricate area of law. Having all the right information can be critical for small businesses when pursuing such claims. At VAKA Law Group, based in Tampa, we understand the complexities surrounding Florida bad faith law and are committed to helping small businesses fight against insurance company misconduct. With decades of combined experience, our knowledgeable attorneys stand ready to help you. Below, we answer some common questions related to bad faith claims.
What is insurance bad faith?
Bad faith is when an insurance company fails to act in a way that is honest, fair and respectful of the rights of its policyholder when handling a claim. As a note, under Florida law, an insurance company’s conduct has to go beyond just simple negligence to rise to the point of being bad faith. Florida allows victims of insurance bad faith to take legal action in response to the harm they suffered.
What can be signs of bad faith?
Recognizing bad faith can be challenging. There are many potential red flags small businesses may want to watch for, including:
- Unreasonable delays in processing a claim
- Failing to properly investigate a claim
- Denying coverage without giving valid reasons
- Unreasonably low settlement offers
- Failure to communicate important information
Our experienced insurance lawyers can help you determine if your business would have grounds for a bad faith lawsuit.
What is the difference between first-party and third-party bad faith claims?
In Florida, bad faith claims are either first-party or third-party. The difference stems from the nature of the insurance claim over which the alleged bad faith occurred. First-party bad faith claims involve insurance claims made by policyholders. Meanwhile, third-party bad faith claims involve insurance claims made against policyholders (liability claims). We help Florida small businesses navigate both first-party and third-party claims.
How can bad faith claims be resolved?
There are many potential ways for a small business to seek a fair resolution in a bad faith case. These include:
- Negotiation
- Arbitration
- Mediation
- Litigation
We can explain your options and use our strategic insights to help you determine the right path for pursuing your objectives in your bad faith case.
Contact Our Knowledgeable Team Today
If you suspect bad faith in your insurer’s handling of an insurance claim involving your small business, let us guide you on your options. Reach out to us now by phone at 813-549-1799 or online through our contact form.