Insurance Coverage Disputes & Bad Faith Claims

Insurance Coverage Litigation in Florida

When a business or property owner pays premiums for years and then faces a denied, delayed, or underpaid claim, the dispute is rarely about whether a loss occurred — it is about how the carrier reads its own policy. Insurance coverage litigation turns on contract interpretation, and the difference between a covered claim and a denied one often comes down to a single definition, exclusion, or endorsement buried deep in the policy form. John Montague, Esq. represents policyholders in coverage disputes and bad faith actions across Florida, bringing the same discovery-driven, trial-ready approach he applies throughout the firm’s civil litigation practice.

Florida is one of the most active insurance litigation jurisdictions in the country. Hurricane and windstorm claims, commercial property losses, business interruption disputes, and liability coverage fights over the duty to defend all generate a steady stream of coverage battles — and Florida’s statutory bad faith framework under section 624.155 gives policyholders meaningful leverage when a carrier fails to settle a claim it should have paid.

Key Issues in Coverage Disputes

Policy Interpretation and Ambiguity

Coverage cases begin and end with the policy language. Florida courts construe insurance policies according to their plain meaning, but where a provision is genuinely ambiguous, ambiguities are resolved in favor of coverage. Building the case means lining up the insuring agreement, definitions, exclusions, and endorsements against the facts of the loss — and anticipating the carrier’s reading before it appears in a reservation of rights letter. Exclusions are construed narrowly, and the insurer bears the burden of proving that one applies.

The Duty to Defend

For liability policies, the duty to defend is broader than the duty to indemnify. Under Florida’s eight-corners rule, the carrier must defend if the allegations of the complaint, compared against the four corners of the policy, even arguably fall within coverage. Carriers that refuse a defense or defend under an overbroad reservation of rights expose themselves to significant consequences, including liability for defense costs and, in some circumstances, the underlying judgment.

Claim Denials, Delays, and Underpayment

Many disputes are not outright denials but slow-walked adjustments: repeated document requests, serial reinspections, lowball estimates, and settlement offers that ignore the true scope of the loss. Documenting the claims-handling timeline is critical, because the adjuster’s file — obtained in discovery — frequently tells a different story than the denial letter.

Statutory Bad Faith Under Section 624.155

Florida law requires insurers to attempt in good faith to settle claims when, under all the circumstances, they could and should have done so. A policyholder pursuing statutory bad faith must first file a Civil Remedy Notice with the Department of Financial Services, giving the carrier a 60-day window to cure. When the carrier fails to cure, the policyholder may recover the full amount of damages caused by the bad faith — including amounts above policy limits. Recent legislative changes have tightened the standards for these claims, which makes early, precise compliance with the statutory prerequisites more important than ever.

Appraisal and Alternative Forums

Many property policies contain appraisal clauses that route disputes over the amount of loss to a panel of appraisers rather than a jury. Whether to demand appraisal, resist it, or litigate coverage first is a strategic decision that shapes the entire case, since appraisal resolves valuation but not coverage.

How We Litigate Coverage Cases

Coverage litigation rewards preparation. The firm’s approach starts with a forensic review of the complete policy — not the declarations page summary the adjuster relied on — and a claims chronology built from every letter, email, estimate, and inspection report. In discovery, we pursue the carrier’s claims file, adjuster notes, internal guidelines, and reserve history, which often reveal how the denial decision was actually made. Dispositive motions frame the interpretation questions for the court, and where the case proceeds to trial, the groundwork laid in discovery becomes the cross-examination of the carrier’s corporate representative.

John’s background pairs courtroom experience with financial fluency. Before founding his own firm, he practiced at Locke Lord LLP (now Troutman Pepper Locke), an AM Law 200 firm, and his accounting degree from Stetson University is a practical asset in business interruption and lost-income claims, where the fight is as much about financial modeling as policy language. That combination lets the firm challenge a carrier’s damages experts on their own terms.

Not every dispute needs a lawsuit. A well-supported presuit demand, a properly filed Civil Remedy Notice, or a strategic appraisal demand frequently moves a stalled claim to resolution. But carriers track which policyholders’ counsel will actually try a case, and credible trial preparation changes settlement posture.

Frequently Asked Questions

My insurer denied my claim. What should I do first?

Request the denial in writing with the specific policy provisions the carrier relied on, and preserve everything: the policy, all correspondence, photographs, estimates, and repair invoices. Do not give a recorded statement or sign releases without counsel reviewing them. Deadlines matter — Florida imposes strict notice and suit-limitation periods, and some are set by the policy itself.

What is the difference between a coverage dispute and a bad faith claim?

A coverage dispute asks whether the policy covers the loss — a contract question. A bad faith claim asks whether the carrier handled the claim fairly — a conduct question. In Florida, bad faith claims generally do not accrue until coverage and the amount of the loss are resolved in the policyholder’s favor, so the cases are usually litigated in sequence.

Can I recover more than my policy limits?

Potentially. Where an insurer acted in bad faith, Florida law permits recovery of the total damages caused by that conduct, which can exceed policy limits — most commonly when a liability carrier’s failure to settle exposes its insured to an excess judgment.

Does my business interruption claim require a forensic accountant?

Usually, yes. Business interruption recovery depends on proving lost income and continuing expenses during the restoration period, and carriers retain their own accountants to shrink those numbers. Presenting a rigorous financial model early, and defending it in discovery, is often the difference between a nuisance offer and full value.