Progressive Insurance Loses Appeal: Florida Court Upholds Bad Faith Finding Over Multi-Party Crash Claims Handling

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Case Background: A Broader View

Though the appeals court’s opinion is short on specifics, what’s not in doubt is the high bar Florida courts are setting for insurance companies embroiled in multi-party accident claims. At issue are the time-sensitive, ethically fraught decisions insurers must make when a single accident produces a tangle of injuries, property damage claims, and competing interests.

Industry insiders note that claims like these often trigger fierce behind-the-scenes negotiations, as insurers weigh the risks of quick settlements against the threat of excess judgments if they fail to resolve all claims within policy limits.

Progressive, according to court records in the Aldana case, allegedly waited months before earnestly seeking a global settlement, ultimately leaving itself exposed to accusations that it failed its insured by not acting “with any haste.”

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A Wake-Up Call for Insurers

The latest ruling is a stark reminder: insurance companies cannot hide behind boilerplate or bureaucratic inertia. The appellate court’s refusal to overturn the trial verdict—without even writing an opinion—reflects a growing judicial impatience with insurer foot-dragging and half-hearted settlement attempts.

For claims professionals, especially those in Florida’s bustling auto insurance market, this decision serves as both a warning and a roadmap: Act quickly. Be transparent. Always prioritize the insured’s protection over the insurer’s convenience.

This ruling resonates beyond the parties involved. It’s a clear message to the entire insurance industry: Legal exposure for bad faith claims handling is very real, and courts are increasingly intolerant of delay tactics or lowball settlements when multiple lives hang in the balance.

Florida’s courts continue to elevate the standards for fair play in insurance, and the insurance sector is now on high alert.

The case is Progressive Express Insurance Co. v. Oney, No. 3D24-1618 (Fla. 3d DCA May 28, 2025). Justia