Insurance Policy Limits

Every insurance policy has an insurance limit that states a maximum amount of money the insurance company will pay on a claim.  The lawyers and their clients know what it is although it is rarely something that can be explained to a jury if a trial is required.  Juries are usually not allowed to be told whether insurance even exists.

Since most cases settle without a trial, it is extremely uncommon for a person’s personal assets to be at risk if a trial takes place.  Very few people have the resources to pay verdicts and besides, that is why they have insurance.  If a jury award exceeds the limits of an insurance policy our office can sometimes make a bad faith claim against the insurance company since they would have had an opportunity to settle within the policy limits.  Instead, they gambled with their insured’s money with the hope that a jury would allow them to pay less so that they would save money.  When they have an opportunity to settle and protect their insured’s assets but end up with a verdict that exceeds the policy limits, the argument can be made that they have been negligent in their handling of the matter to the detriment of their insured.  

As a result, after an assignment of rights by the insured to the plaintiff, the plaintiff can actually sue the defendant’s insurance company to recover the excess of any verdict.  This is known as a “bad faith” claim.  However, it is uncommon for a verdict to exceed an insurance company’s policy limits.  Generally, the plaintiff’s lawyers do not ask the jury for more than they know they are going to be able to actually recover from the case.

We handle cases all over the State of Vermont – in Bennington, Burlington, Brattleboro, Rutland, Woodstock, St. Albans, Montpelier, Manchester, Springfield, the Northeast Kingdom and anywhere else where there is jurisdiction in the State of Vermont.  If you have a personal injury problem, feel free to contact us.