In a recent development within the insurance industry, insurers may find themselves accountable for pre-suit attorney’s fees, according to a bulletin from
Butler Weihmuller Katz Craig LLP. However, it is noted that such circumstances may be circumvented if pre-suit settlements are considered.
Under section 627.70152 of the Florida Statutes (2021), if insurers tender policy limits to an insured in response to a Notice of Intent to Litigate, it eliminates the insured’s ability to recover pre-suit attorney’s fees from their property insurers in a later litigation for the same claim.
This measure effectively shifts the burden of pre-suit attorney’s fees onto insurers, raising notable considerations for how insurance companies manage sensitive matters pertaining to claims and litigation.
Insurance companies, with their substantial resources, could be on-the-hook for significant costs if they do not adeptly manage their pre-suit settlements and adequately respond to Notices of Intent to Litigate. On the other hand, if managed wisely, this situation offers insurance companies a means to potentially lessen the overall costs related to litigation by strategically settling before suit.
Therefore, it appears increasingly imperative for the insurance industry to diligently monitor and respond to Notices of Intent to Litigate. The timely and thorough evaluation of claims, coupled with considered decisions over whether to pursue pre-suit settlements, may ultimately serve to minimize exposure to these additional financial obligations.
In conclusion, whilst the landscape has become more complex as a result of these legislative changes, opportunity does exist for insurers savvy enough to exploit this new situation to their advantage. Attention and judicious decision-making are now ever crucial in settling claims amidst these changes.