Floridians have enjoyed the protection of insurance bad faith laws for over 70 years.  These well established principles require insurance companies to settle claims against their policyholders.  HOWEVER, insurance companies are only required to settle claims when they could have and should have done so.  Insurance companies in Florida have never been required to settle frivolous claims.  Instead, they merely have to be proactive and settle those claims that, under the totality of the circumstances, can and should be settled.

It seems incredible that huge insurance companies, so happy to collect premiums from their policyholders, would balk over settling claims that should be settled.  Regardless, as a consumer or small business owner, why should you care about what happens in the Legislature?  Simply put, if insurance bad faith protections are gutted and you receive a claim, you will be liable for any amount in excess of the policy limits. This will be true even if your insurer failed to settle the claim when it should have done so.  Such an excess judgment can destroy a small business and can destroy the financial future of an entire family. Insurance companies will be able to drag their feet, not pay claims, and face absolutely no consequences whatsoever.  They will, of course, still insist on receiving every single penny of the premium on time. 

Big businesses, including insurance companies, currently have many friends in the Florida Legislature.  After all, they contributed millions and millions of dollars to help them get elected.  The insurance companies are seeking unprecedented changes from their elected friends so they will be immune from providing the very protection their policyholders purchased.  This is simply unfair.

Let your elected officials know how you feel.  Tell them that you believe Floridians deserve the protections afforded by the longstanding laws governing insurance bad faith.  Do not let big insurance companies destroy the safety net you, your family, and your business need.

Reality, of course, is much different from television drama.  Many civil disputes are resolved before a lawsuit is even filed.  Of those that are filed, well over 9 out of 10 are settled without the client ever setting foot in the courthouse.  Florida has a very strong pre-trial mediation program.  This program is mandatory, and no case can go to trial in Florida without first going through the mediation process.  Trained mediators help the parties try to reach a compromise they can live with.  We have had great success in resolving cases through pre-trial mediation.

Of course, not every case settles before trial.  We have found that, after getting over the initial butterflies, our clients almost universally agree that the process is not as bad as they expected.  Palm Beach County is blessed with the finest judiciary in the State of Florida.  Our Judges do not allow the sort of behavior seen on television dramas, and the experience is simply not as nerve-wracking as TV would suggest.

Our lawyers have a vast amount of trial experience. Insurance companies and defense lawyers know this.

Our abilities in the courtroom allow us to resolve most of our cases before trial.  While it might be natural to have feelings against “going to court,” that should never be a reason for not pursuing a valid claim.

Unfortunately, sometimes insurance companies that were so eager to take in the premiums refuse to enter into fair settlements. This is unfair to the policyholder who paid the premiums, as it exposes the policyholder to a judgment in excess of the policy limits. It is equally unfair to the personal injury victim who can’t work and needs the money to pay bills or to the widow whose husband has died. Often times, people are forced to sue because the insurance company refuses to make any settlement offer – much less a fair one.

Lesser, Lesser, Landy & Smith has the experience and resources to go toe-to-toe with insurance companies and force them to fulfill their fiduciary obligations to act in good faith when handling claims. Our attorneys have over 40 years of prior experience representing insurance companies and over 170 years of experience practicing law. We are proud of our role in leveling the playing field for Florida consumers.