Ticking Financial Time Bomb: Eleventh Circuit Reaffirms Insurer’s Duty to Initiate Settlement in Florida Bad Faith Case

Ticking Financial Time Bomb: Eleventh Circuit Reaffirms Insurer’s Duty to Initiate Settlement in Florida Bad Faith Case

In April 2025, the Eleventh Circuit reversed a judgment against a Florida lodge and held that a jury should determine whether the failure of the lodge’s insurer to initiate settlement proceedings before a claim was filed constituted bad faith. In reversing the district court, the Eleventh Circuit reinforced the key duty imposed on insurers under Florida law to diligently and carefully investigate claims and act with an appropriate degree of care…