Common Causes of Insurance Litigation: Breaches of Contract and Bad Faith Claims

Insurance litigation can be a complex and stressful process, but it’s essential to understand the underlying causes to protect your rights and secure the compensation you deserve. Two of the most common causes of insurance litigation are breaches of contract and bad faith claims.

Breaches of contract occur when an insurance company fails to live up to the terms of the policy, either by denying a valid claim or failing to pay the full amount owed. On the other hand, bad faith claims arise when an insurance company acts unfairly or deceptively, such as delaying payment without a reasonable basis or failing to investigate a claim adequately.

In this blog, we’ll explore these common causes of insurance litigation in detail and provide the information you need to navigate the process confidently.

Navigating Insurance Policy Disputes

Insurance policies can be complicated to understand, especially when a dispute over what is or isn’t covered. This means that even with the best intentions, you may argue with your insurance company after a loss occurs. When this happens, it’s crucial for you as a policyholder to have an attorney who understands the laws in your jurisdiction and how they apply to insurance contracts.

Disagreeing With Your Insurance Company

A contract is a legal document that defines the terms of an agreement between two parties. An insurance policy is one kind of contract, setting out what the insurer will pay if a loss occurs and how much money will be required from the policyholder.

Contract interpretation can be complicated because there are many interpretations for any given provision in an insurance contract. The language in these documents may be ambiguous or unclear, or it may differ from how the policyholder thought about it when she signed up for coverage. This can lead to disputes over whether certain events fall under covered causes of loss (or “perils”) as defined by the policy; whether those perils have occurred; who should bear responsibility for any resulting damages; and so on.

Breach of Contract

Breach of contract is a legal term that refers to a failure by one party to fulfill its obligations under an insurance contract. This can range from intentional acts like fraud or theft, considered torts in some jurisdictions, to unintentional breaches, such as failure to pay claims within the required time frame or denying coverage for an otherwise valid claim.

The term “breach” is used by both attorneys and clients when they refer to a failure by an insurer to fulfill its obligations under an insurance contract. It may also be used as part of other legal terminology, such as “breach of duty” or “breach of warranty.”

Bad Faith

Bad faith is a legal term that refers to specific types of misconduct by an insurance company during contract negotiations or after a loss occurs. Bad faith can include failing to pay claims, acting unfairly by refusing to pay claims, failing to investigate allegations, delaying payment of claims, or otherwise violating Florida’s Deceptive and Unfair Trade Practices Act.

Bad faith insurance litigation is on the rise because of the high cost of litigation and Florida’s new law, which takes away the insured’s prevailing party attorney fees awards for policies issued in 2023 and forward. To recover a bad faith action in first-party insurance cases, the party has to file a civil remedy notice and obtain a judgment for breach of contract against the insurance company.

Contact Coquina Law Group Today!

If you are involved in an insurance dispute, you need an attorney who understands how insurance law works in your jurisdiction. If you’re going up against an insurance company, they will have attorneys who know the law very well and are experienced at defending claims.

Don’t wait another day to fight for the compensation you deserve. If you’re dealing with insurance litigation, it’s time to contact the expert attorneys at Coquina Law Group. Our team of legal professionals has extensive experience in handling complex insurance disputes, and we’re here to help you navigate the process every step of the way. Whether you’re facing a denied claim, an undervalued settlement, or any other issue related to insurance litigation, we’re here to help you achieve the best possible outcome.

With a deep understanding of the law and a commitment to your rights, our attorneys will tirelessly protect your interests and secure the compensation you need to move forward. We’ll be by your side from start to finish, providing guidance, support, and the expert legal representation you need to succeed.

Contact Coquina Law Group today, and let us help you fight for the justice you deserve. Fill out our online form, call us at (386) 675-1300 or (904) 810-1025, and one of our experienced insurance litigation attorneys will contact you to discuss your case.