What is the difference between an insurer's liability for bad faith and breach of contract in insurance litigation cases?

In insurance litigation cases, an insurer’s liability for bad faith and breach of contract are two separate causes of action. Breach of contract is a legal term that means a party failed to fully meet their obligations according to the terms of an agreement, such as an insurance policy. Breach of contract typically results in financial damages for the injured party. The insurer’s liability for bad faith in Florida is much broader. Bad faith is an intentional or reckless act of dishonesty or misconduct. Bad faith can also include an insurer’s conduct that violates public policy or accepted standards of decency. Florida law allows an injured party to recover economic losses such as medical expenses, wage loss, and attorney fees, as well as non-economic damages such as emotional distress or humiliation. This means an insurer in Florida may have to pay more in damages if they are found to have acted in bad faith. Breach of contract claims are generally easier to prove than bad faith claims, but the damages an injured party can recover are usually more limited. On the other hand, a successful bad faith claim can result in significant damages. To win a bad faith claim in Florida, an injured party must prove the insurer violated public policy or accepted standards of decency and purposely intended to harm the insured. These claims can be difficult to prove, but they can be very rewarding for the injured party.

What is the difference between an insurer's liability for bad faith and breach of contract in insurance litigation cases?

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