In Florida, an inadequate defense provided by a liability insurer is actionable as a breach of contract and contract damages are recoverable upon proper proof:
Florida law requires an insurer to provide an adequate defense of a claim against its insured that is covered by a policy. If the defense is not adequate and it is reasonable for an insured to retain its own counsel, then an insured may recoup attorney's fees from an insurer because it has, in effect, forced the insured to retain its own counsel.
Maronda Homes, Inc. v. Progressive Exp. Ins. Co., 118 F. Supp. 3d 1332, 1335 (M.D. Fla. 2015) (Presnell, J.), appeal docketed, No. 15-13998 (11th Cir. Sept. 8, 2015).
Please Read The Disclaimer. ©2016 by Dennis J. Wall, author of Litigation and Prevention of Insurer Bad Faith (3d ed. Thomson Reuters West in 2 Volumes, with Supplements). The consequences of providing an inadequate defense are considered in Volume 1, § 3:90. All rights reserved.