In recognition of this reality, today’s post, the first in a series, will start providing some essential background information on some of the duties owed by insurance companies to their customers.

What is an insurance policy?

At its core, an insurance policy is a contract executed between the insurer (the insurance company) and the insured (the customer) promising to compensate them for certain losses caused by certain perils in a certain area in exchange for consideration in the form of premiums.

For example, consider homeowner’s insurance, a line of property insurance that is essentially designed to protect an insured from any loss or damages to their domicile.

Why does this matter?

The fact that a policy is a contract is significant because it establishes that the insurance company owes their customers certain contractual duties. For example, in the eyes of the law, insurance companies owe a common law duty to defend and duty to indemnify.

What is the duty to defend?

The duty to defend means that the insurance company has an obligation to provide a legal defense to customers facing lawsuits filed by third parties that fall within the scope of the insurance contract.

What is the duty to indemnify?

The duty to indemnify means that the insurance company has an obligation to make payments to their customers for valid claims.

We will continue to examine this topic in future posts. In the meantime, if you have questions or concerns relating to insurance bad faith, please consider speaking with an experienced legal professional as soon as possible.

Has Your Home Insurance Company Denied Or Undervalued Your Property Damage Claim In Florida?

If your insurance company is dragging their feet regarding your property damage claim you should speak with an experienced insurance claim lawyer as soon as possible. Please contact us online or call our Florida law office directly at 800.451.6786 to schedule your free consultation. We help Florida residents just like you fight the big insurance companies who fail to abide by their own policies. Remember, we work on a contingent basis, meaning you don't pay us anything until we win your case. 

K.C. Williams III
Managing Partner who has spent his entire career representing Florida insurance and personal injury claims.