What is insurance bad faith, and how has Florida law on it changed?

Insurance bad faith refers to an insurer’s failure to act fairly and honestly toward its insured — for example, unreasonably failing to settle a claim it should settle. Florida’s bad-faith framework was significantly changed by the 2023 tort reform legislation, HB 837. Under the current law, mere negligence by the insurer is not by itself enough to constitute bad faith, and the law imposes a duty on the insured and those representing them to act in good faith in the claims process as well. These changes shifted the landscape of insurance disputes in Florida. Because this is a technical and evolving area, the specifics should be confirmed against the current statute, but the key point for a claimant is that both sides now have defined good-faith obligations in how a claim is handled and negotiated.