Home | Business News | Browse by Publication | T | Trial

Multiplying coverage in collision cases: does the motor vehicle crash that injured your client encompass more than one 'occurrence'? If so, gather evidence to prove it, so that full coverage is available to all injured parties.

Article Excerpt
When an automobile collision causes multiple losses, determining the extent of liability coverage for each party can be problematic. Most liability policies limit coverage to a specified amount, depending on the number of "occurrences" in a particular case. It often is difficult to determine whether there has been one or multiple occurrences.

For instance, many trucking companies have a $1 million "per occurrence" liability policy. Simply agreeing with the defendant's restrictive definition of "occurrence" in such a case certainly will limit recovery to that amount, regardless of the number of injured parties. In a catastrophic injury or death case involving multiple parties, a settlement limited to $1 million often is insufficient to compensate each adequately.

However, by properly investigating and handling the case and evaluating the policy, you can separate your client's claim from those of others who were injured or killed. Under the law of your jurisdiction, you can use witness testimony, accident reconstruction, and vehicle black boxes to establish that a separate occurrence resulted in your client's injuries. Doing so can mean the difference between a full-limits recovery for your client and splitting that amount among multiple parties.

Liability insurance provides coverage for legal liability imposed on the insured as a result of unintentional and unexpected personal injury or property damage. Before 1966, coverage was keyed to the word "accident," defined in most policies as "a sudden and unforeseeable event." Courts have always struggled with the term "accident" and have defined it in different ways, but each definition-whether arising in property, personal, or liability insurance--included a common theme: An accident was defined as an unforeseen, unexpected, and unintended event that results from a known or unknown cause. (1)

In 1966, the standard liability policy was revised to key coverage to an occurrence. As of 1973, the standard comprehensive general liability policy defined "occurrence" as "an accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured." (2) Because repeated exposure to conditions constitutes one accident, the policy limits apply once, regardless of the number of conditions or losses.

In determining whether a single policy limit or multiple limits should be applied to a case, the courts have considered the policy definition of "occurrence," the number of victims, and the events giving rise to liability. "Occurrence" has been defined by courts across the country in three primary ways: using the "effect" analysis, the "cause" analysis, and the "liability-triggering event" analysis.

The effect analysis

A small minority of courts employs the effect...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!