When You Want a Policy That Pays

Understanding insurance policies can be challenging. If you have a policy, you need to make sure you know what it covers, what it does not cover, and what problems could arise when you make a claim. If you have no coverage at all or need to add another policy, it makes good sense to act proactively.

When You Want a Policy That Pays

Understanding insurance policies can be challenging. If you have a policy, you need to make sure you know what it covers, what it does not cover, and what problems could arise when you make a claim. If you have no coverage at all or need to add another policy, it makes good sense to act proactively.

• SITUATION A personal injury lawyer asked John to conduct a detailed insurance policy analysis. The driver who hit his client was driving a friend’s car. The owner of the car was insured under a $1 million policy, but the driver had no insurance at all. The insurance company claimed it owed nothing because its policy did not cover the friend. If the driver was not covered and the insurance company refused to pay, the injured victim would be left with rapidly mounting medical bills.
• RESOLUTION John poured over the policy and understood the insurer’s position. However, he also knew there was a specific auto insurance law in Virginia stating that anyone who drives a car with its owner’s permission is automatically covered under the owner’s insurance. Suddenly there was a new source of funding the lawyer could use to recover hundreds of thousands of dollars for his client.