Situations Where Damages Collected Exceed The Limits In The Insurance Policy

The terms in any insurance policy make reference to a limit. That limit is the maximum amount of money that a policyholder can expect to get for any submitted claim. One important fact goes unmentioned in the policy’s terms. That fact provides details on the ways that can be used, in order to obtain more than the stated limit.

Filing a lawsuit provides a policyholder with one way

A policyholder has the ability to bring a lawsuit against more than one defendant, if 2 or more parties could be held responsible for the reported accident. Policyholders can make use of their ability to file suits against multiple defendants, during a case against a large company.

A consumer might choose to fight a large company, if a defective product has caused that same consumer to become injured. In that case, the injured consumer might bring a suit against the designer, the manufacturer and the marketer.

Plaintiffs with an umbrella policy can seek a damage award that exceeds the policy limits.

Large companies frequently invest some of their money in an umbrella policy. Those same companies can take advantage of their access to umbrella coverage, if the demand from a plaintiff exceeds the limited amount in another type of coverage. In other words, the coverage provided by one particular policy’s umbrella terms kicks-in, if the company needs more money, in order to satisfy a claimant’s demands.

Plaintiffs could elect to meet personally with the defendant

That meeting between the plaintiff and the defendant takes place in a courtroom. In other words, the victimized party takes the responsible party to court. A driver that was hit by an uninsured motorist might take that approach.

There was a time when suing the opposing party was the only way to get compensated for any losses sustained, after getting hit by an uninsured motorist, as per Personal Injury Lawyer in Bridgewater. Today, drivers have the ability to purchase uninsured motorist coverage. Still, not all insured drivers elect to invest in such coverage.

Hence, there could be times when a driver that had been hit by one of the uninsured drivers on the road might decide to take that other party to court. That action would allow the party/driver with the losses to seek a monetary payment from the opposing party. What sort of payment could such an irresponsible person make? The plaintiff might elect to place a garnishment on the defendant’s wages. Alternatively, the same plaintiff might decide to place a lien on one or more of the defendant’s properties.

Those moves only work if the defendant has assets. In the absence of such assets, the plaintiff faces the limitations imposed by one simple fact. There is no money for compensating plaintiffs.

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