New Florida Law Changes the Game on Insurance Bad Faith Claims

If you’ve been hurt in an accident and the insurance company isn’t playing fair, you may have heard of something called a “bad faith” claim. As a Florida personal injury lawyer, I’ve spent years watching how insurers try to delay, deny, or lowball rightful claims—and I’ve also used Florida’s bad faith laws to hold them accountable.
But a lot changed in 2023.

Florida’s legislature passed a sweeping law—House Bill 837 (HB 837)—that made it significantly harder to pursue a bad faith case against an insurance company. If you’re a fellow attorney or even a claimant trying to understand your rights, you need to know how these changes affect the rules of the road.

Below is a breakdown of what the new law does, how it affects injury victims, and what lawyers need to adjust moving forward.

1. Insurers Now Get a 90-Day “Safe Harbor”

Under the old rules, if an insurer didn’t settle when it was obvious they should have, they could be held liable for the full judgment—even if it far exceeded the policy limits. That’s where bad faith lawsuits came in: to protect accident victims from insurer delay or gamesmanship.

HB 837 changed that.

Now, once an insurance company receives all the documents supporting a demand—medical records, bills, accident reports, and so on—they have a full 90 days to investigate and pay. If they tender policy limits within that window, they are immune from bad faith liability.

What this means in practice: If you’re sending a demand letter, make sure your package is complete. Every piece of evidence needs to be included up front. Because once they get the full file, the clock starts—and they’ve got legal protection if they pay on time.

2. Negligence Isn’t Enough Anymore

One of the quieter but important changes in HB 837 is the clarification that negligence by itself doesn’t equal bad faith.

Previously, if a claims adjuster made sloppy mistakes, missed key deadlines, or failed to communicate, that behavior could support a bad faith claim. But now, the statute explicitly says insurers aren’t on the hook for simple carelessness.

They have to act dishonestly, unfairly, or with willful disregard for their insured’s interests.

Translation for attorneys: You now need stronger evidence. You’ll want to show a pattern of stonewalling, unreasonable demands for documentation, or outright refusal to settle in a case with clear liability and serious injuries.

3. Claimants Must Act in “Good Faith” Too

This is one of the more controversial parts of the new law.

Under HB 837, injured people and their lawyers now have a duty to act in good faith, too. That means your demand can’t be unreasonably aggressive. You can’t set an unrealistic deadline. And you need to provide what the insurer legitimately needs to evaluate the claim.

If you don’t, the insurer can use that as a defense in a later bad faith case—and you might lose your shot at holding them accountable.

Strategy tip: Stay professional. Even if the adjuster is frustrating you, don’t send heated emails or refuse reasonable follow-ups. Every communication could be exhibit A in a future court hearing about whether you acted in good faith.

4. New Rules for Multiple Claimants

Picture this: There’s a five-car pileup. Multiple people are injured. The at-fault driver has a $100,000 policy—but five different lawyers are demanding the full limit.

Under the new law, insurance companies now have two safe options in these scenarios:

• File an interpleader action in court and let a judge decide how to divide the money.
• Offer binding arbitration and make the full policy limit available, with all parties agreeing on the distribution.

If the insurer uses either of these options within 90 days, they avoid bad faith exposure—even if not everyone walks away happy.

What this means for you: In multi-party accidents, be ready to negotiate. And expect procedural delays if the insurer chooses the interpleader route. It’s a new shield they’ll use—often.

5. Harder to Get Attorney’s Fees in Coverage Disputes

Before HB 837, Florida law gave injured claimants the right to recover their attorney’s fees when suing their own insurance company for denying coverage. This was a huge tool for leveling the playing field.

Now? That right is almost gone.

With very few exceptions, you can only recover fees in declaratory judgment actions—and even then, only when the insurer completely denied coverage. This doesn’t apply to property insurance claims either.

Why it matters: Some claimants may now struggle to find attorneys willing to fight smaller coverage disputes if fees aren’t recoverable. The financial math has changed.

6. Applies Only to New or Renewed Policies

One important technical point: HB 837 only applies to insurance policies issued or renewed after March 24, 2023. So if you’re litigating an older claim or working with a policy that predates that cutoff, the old bad faith rules still apply.

Best practice: Always check the issue or renewal date on the dec page before deciding which strategy to pursue.

What This Means for Injured People in Florida

These changes are major. If you’re injured and dealing with an insurance company that’s dragging its feet, you still have rights—but the path to enforcing those rights just got trickier.
Here’s what hasn’t changed:

• You still deserve fair compensation for your injuries.
• Insurance companies still have a duty to act in good faith.
• Lawyers like me are still here to hold them accountable when they don’t.

But we now need to be more strategic, more thorough, and more prepared than ever before.

Final Thoughts

Florida’s new law tilted the playing field in favor of insurers. But that doesn’t mean you should back down if you’re being mistreated by an insurance company. It just means you need an attorney who knows how to navigate the new landscape.

If you’re injured in an accident, don’t let the insurance company take advantage of you. Call Jaime “Mr. 786 Abogado” Suarez today to Get You Paid!