Available Coverage
Definition
Available coverage refers to all insurance policies and coverage types that may apply to pay for a claim. This includes not only the at-fault party’s liability insurance but also the injured person’s own policies such as uninsured/underinsured motorist coverage, medical payments coverage, umbrella policies, and potentially other sources like employer-sponsored insurance or government benefits.
How It’s Used in Personal Injury Cases
Identifying all available coverage is essential to maximizing your recovery. Insurance adjusters rarely volunteer information about all potential coverages—you or your attorney must investigate. Available coverage may include the defendant’s auto liability policy, commercial liability policies (if the defendant was working), umbrella or excess policies, your own UM/UIM coverage, medical payments coverage, and health insurance. Multiple policies might stack together to provide greater recovery.
Practical Example
Jessica was seriously injured when a delivery truck ran a red light. Investigation revealed multiple sources of available coverage: the driver’s personal auto policy ($50,000), the delivery company’s commercial policy ($1 million), and an umbrella policy ($5 million). Jessica’s own underinsured motorist coverage ($100,000) was also available if needed. By identifying all available coverage, her attorney could pursue full compensation for her $500,000 in damages rather than settling for the driver’s inadequate personal policy limits.
Why It Matters to Your Case
Your recovery is limited by available coverage—you cannot collect more than the combined coverage available to pay your claim, regardless of how severe your injuries are. Thoroughly investigating all potential coverage sources ensures you identify every possible source of compensation. Your attorney should examine policies from all potential defendants, your own policies, and any additional coverage that might apply.
Key Takeaway
Available coverage includes all insurance that could pay your claim—thorough investigation of every potential policy source is essential to maximizing your recovery.