What Is Excess Coverage?
Excess coverage is a type of insurance that provides additional protection when a claim exceeds the limits of a primary insurance policy. In personal injury cases, excess coverage ensures that victims can recover full compensation for damages when primary insurance policies are insufficient to cover their losses. This type of coverage is often used in high-value claims involving severe injuries or multiple claimants.
How Excess Coverage Works
- Supplemental Coverage: Kicks in after the primary policy has paid its maximum limit.
- Policy Requirements: Primary coverage must be exhausted before excess coverage applies.
- Example: If a primary auto insurance policy covers up to $50,000 but the damages total $100,000, excess coverage may provide the additional $50,000.
Importance of Excess Coverage in Personal Injury Cases
- High-Value Claims: Essential in cases involving catastrophic injuries or wrongful death.
- Protecting Assets: Prevents defendants from being personally liable for damages that exceed their primary policy.
- Maximizing Compensation: Ensures that plaintiffs receive full compensation for medical bills, lost income, and other damages.
Attorneys often identify all potential sources of insurance, including excess coverage, to ensure that victims receive adequate compensation for their injuries.
