Personal Liability insurance is insurance that just like its name says is personal to the individual. For example the most dangerous activity that most people take part in every day is driving, and most of these people have car liability insurance to protect themselves in case they were to cause an accident with their car. But what happens if you hurt someone and you are not in your car? This is where personal liability insurance steps in. Many times people who own homes have personal liability protection as part of their homeowner’s policy.

The type of policy a person carries and the language contained therein determines every person’s coverage. Typically no personal liability policy covers a person who assaults another individual and they do not cover a person who is operating a car.

Missouri is considered a “Direct Action” state. This means that when one individual is hurt by another, the injured party files suit against the person that caused the injury, not that person’s insurance company. The insurance company gets involved because they provide personal liability protection, and they have agreed to pay certain amounts should the insured person be found liable for another’s injuries. Sometime the person who caused the injury does not have enough personal liability coverage to pay for the injuries they caused. Policies have “Policy Limits” this is the highest amount the insurance company will pay per insured occurrence. For example if a person caused $300,000 in damage but only had a $100,000 personal liability policy that person would be responsible for the remaining $200,000 themselves. In cases like this it is unlikely you will be able to collect the remaining outstanding amount, it is important that you look for all places of possible coverage. Sometimes a person has an “Umbrella Policy” which makes sure that when one insurance is exhausted that the person still has coverage for any remaining amounts not covered by the personal liability policy.

These cases can be confusing and questions are often raised as to if coverage even exists. If you have been injured and think there may personal liability claim please feel free to give me a call for a free consultation.