Additional Policy Liability Coverage
What happens when an injured third party's damages exceed the liability coverage amount that the party causing the accident has?
In this instance, a Phoenix personal injury attorney may be able to help provide a source for additional coverage and compensation. When more than one person's liability policy is able to provide coverage, there is a policy that is considered and called the primary coverage provider, and a second provider known as the excess coverage provider, or secondary coverage provider.
Typically in a Phoenix personal injury attorney case, the primary coverage provider will pay the damages and the secondary policy will only apply if the limits of the primary policy run out in covering the total damages involved. When such a case arises, the secondary coverage will pay to the extent necessary to make up the difference between the limits of the primary policy.
The sources and availability of primary and secondary insurance, or double coverage as it is called, depends on other facts. These facts include who owns the vehicles involved in the accident and how much total insurance is available. When such scenarios arise, insurance companies themselves have the burden of notifying claimants the existence of primary and secondary insurance and which policy is which. The insurance company in the primary position will be the entity who will negotiate the claim, at least at the initial stages.
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