Insurance (continued)

When will Liability Insurance not cover an accident?
Under most insurance policies, those acts which were wrongful and carried out intentionally will not be covered. This insurance is only intended to cover accidents and not intentional acts.

There will be no coverage under a liability policy if a particular individual has been specifically named as being excluded under that insurance policy. Even though the named individual is excluded under the policy others under that policy would still be covered.

How much does a Liability Insurance Carrier have to pay?
An insurance company is only obligated to pay up to the amounts of the insurance limits provided under the policy held by the responsible party. Even if the injured person has medical expenses or other damages which are well above the insurance limits, the only amount that the insurance company is required to pay is the amount contracted under the policy. In many instances people are injured where the responsible party is under-insured.

For example, under a $15,000.00/$30,000.00 policy where one person is injured and has $30,000.00 in hospital and other medical bills, the maximum amount the insurance company will pay that person is $15,000.00. If more that one person is injured in that same accident, the insurance company will pay no more than $30,000.00 between all injured persons.

<< Previous    Next >>