In Florida, What Is An Insurance Breach Of Contract?

Insurance companies have extensive experience in preparing and litigating policy terms. Insurance companies have a wealth of experience in maximizing their profits by using business practices that reduce claim payouts. Insurance companies carefully craft their policies in a way that maximizes profits. The client can bring a civil lawsuit against an insurance company if the insurance company violates a contract with them.

What Is A Breach Of Contract And How Does It Affect You?

A breach of contract is a failure to meet obligations or responsibilities as required by a legal agreement or contract. A breach of contract can be defined as any act or omission that violates either the terms, language, or provisions of the contract. A breach of an insurance contract refers specifically to an insurance provider not fulfilling the terms and conditions of a contract (e.g. an insurance policy) with a customer.

Common Examples Of Insurance Breach Of Contract

It is not uncommon for insurance companies to fail to honor their promises to clients. Insurance companies are for-profit businesses and will use every tactic to protect their profits. They may even breach a contract. A breach of a contract can be a sign of insurance bad faith. This is when an insurance company fails to address a client’s legal problem in good faith. Insurance companies may breach contracts in common examples:

  • Falsely advertising policies or using deceptive sales practices
  • Interpreting a policy’s language incorrectly
  • Failure to meet reasonable expectations of the policyholder
  • Unconscionability: Using ambiguous, unfair, or illegal language in its contract
  • Failure to respond within a reasonable time to a claim
  • Failure to investigate a claim properly
  • Refusing payment for something that is covered
  • Refuting liability in an accident or other event
  • For a loss, the policyholder is not entitled to receive a lower amount.
  • Limits of the policy do not allow for as much.
  • Rejecting a claim for no valid reason

Any unfair or untrue dealings of an insurance company against a policyholder can be considered a breach and could result in the policy being canceled. The wronged policyholder could sue the insurance company for not fulfilling the promises and failing to fulfill the covenant of goodwill.

Can I Sue My Insurance Company For Breach Of Contract?

A contract breach is a violation of civil law. An example of wrongdoing is a breach of contract by an insurer. A tort causes injury, harm, or financial loss to victims. The victim (plaintiff), has the right to file a personal injury lawsuit against at-fault parties (defendants) to seek financial compensation. It is possible to file a civil lawsuit in Florida for insurance breaches of contract.

This type of case involves a judge or court interpreting an insurance contract and analyzing the actions taken by the insurance company to determine if there was a violation. The policyholder could be awarded fair compensation for any damages sustained, in addition to general damages for bad faith insurance. If the insurer breaches a contract with outrageous or egregious conduct, punitive damages could be available.

A breach of contract lawsuit against an insurance company must be filed within a certain time limit. This time limit, also known as the statute of limitations in Florida, is usually five years. The deadline for cases involving specific performance breaches of contracts is one year. If you suspect you may have a case for breach of contract, it is crucial to get in touch with an insurance lawyer in Florida as soon as you can. An attorney can assist you in filing the necessary paperwork to obtain fair financial compensation.

This post was written by Kelly-Ann Jenkins of Jenkins Law P.L. Kelly-Ann is an insurance claims attorney. The information on this site is not intended to and does not offer legal advice, legal recommendations or legal representation on any matter. Hiring an attorney is an important decision, which should not be based on advertising. You need to consult an attorney for legal advice regarding your individual situation.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information.  This website contains links to other third-party websites.  Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.

 

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