An important aspect to consider when you are in the process of building up a personal injury or employment-related case is your insurance policy limits.
Every insurance company has their own maximum amount of damage compensation and knowing the limits that the company has set is essential for building up a strong case especially in issues where there is a significant amount of damage involved.
This blog will explain what insurance liability limits are and why policy limit search matters.
Insurance Policy Limit Definition
The coverage that an insurance company provides is not unlimited hence, they impose restrictions on the amount they will cover for different kinds of cases. Supposing you sustained a work-related injury, your attorney will investigate your employer’s insurance policy which will help them present and defend your case better.
Likewise, this also applies to companies or individuals who are being wrongly sued for the services or products they provided. Therefore, knowing their insurance policy’s exclusions will help them determine what kind of case they can pursue.
What is policy limit search?
A policy limit search or insurance liability tracing provides the attorney with a bigger picture of your insurance policy and coverage. Significantly, knowing the policy limits, exclusions and restrictions will allow the plaintiff’s team to know the facts related to the policy of the at fault to achieve a better verdict by seeking the maximum compensation.
Think of the limit search as a research process that reveals the following significant details:
- The defendant’s insurance policy number
- Confirmation that a policy exists
- Limits on a particular policy on the date of a loss
- Verification a defendant was insured on the date of loss
- An umbrella policy or other excess coverage (if existing coverage is insufficient)
Advantages of Policy Limit Search
Clarifies if the insurance is sufficient
The policy limits affect how much you can receive for the damages sustained or pay as compensation for damages caused. Supposing you were involved in a vehicular accident, a policy limit worth $25,000 will not be enough to compensate for injuries that need $50,000 to $75,000 worth of treatment.
Reveals the Case’s Value
Conducting a thorough policy limit search will help attorneys identify what they can legally demand. This helps them prepare strong negotiation points that will benefit their client’s case.
Helps the attorney create a strategy to achieve the best claim possible
Knowing the defendant’s financial details helps your attorney create a demand letter that seeks the maximum compensation possible.
Explains Medical Coverage
Medical treatment plays a vital role in personal injury cases and often incurs substantial costs for the plaintiff. The defendant’s insurance should ideally cover the plaintiff’s treatment expenses. If the treatment exceeds the policy limits, the plaintiff may face out-of-pocket expenses, leading to additional stress. Additionally, exploring other sources of coverage or liability can potentially enhance compensation beyond the policy limits. However, it is essential for your legal team first to ascertain the available coverage.
Common Steps Involved
- Identify the Insurer: Investigate which insurance company issued the policy in question.
- Collect Policyholder Details: Gather comprehensive details about the policyholder, including their name, address, and policy number, if available.
- Obtain Legal Documents: If necessary, obtain the necessary legal documents, such as a court order, to request policy limit information from the insurer.
- Request Policy Limit Verification: Contact the insurance company to request the policy’s maximum coverage limit.
- Examine and Verify: After receiving the information, meticulously review and verify all documents to confirm the policy limits.
Fund Capital America’s Insurance Limit Tracing Service
Fund Capital America offers top-tier insurance limit tracing services. Our professional team provides fast turnaround times and regular case updates via our portal. FCA’s investigation team meticulously trace policy existence, limits, and umbrella policies to save you time and money on discovery and court proceedings. These comprehensive services cover auto, business, homeowners, umbrella, professional malpractice, premises, and product liability policies.
Partner with us for confidential, encrypted reports and benefit from our no-risk service—no fees if we find no information.
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