What is insurance bad faith?
nsurance bad faith is a complicated area of the law and in Florida, it’s frequently changing. But it basically works like this; if you’re involved in an accident with another driver and that driver has, let’s say, a $10,000 policy of insurance, and your injuries are a broken leg and a broken arm, and you go to the insurance company for the other driver and you say, “Look, I’ve all these bad injuries. Please pay me the $10,000” and the insurance company refuses to do so, then you end up filing a lawsuit against the driver and then getting a judgment for more than $10,000.
That insurance company may be liable to pay, not only the $10,000 that it should’ve paid in the beginning, but all of your damages thereafter. That’s insurance bad faith.