Is there really a $9,000 policy limit for businesses?
I’m currently dealing with a claim against a mechanic for significant damage to my car. Lawyers are involved, and after two months of little progress with the adjusters, things seemed to be moving last week.
I received a demand stating they would accept the policy limits, but only if I provided proof of those limits along with a declaration of no additional insurance.
The adjuster then contacted my lawyer, claiming a settlement had been reached (which it hadn’t) and inquiring about where to send the check—yet no specific amount was mentioned. After some discussion, the adjuster claimed the policy limit was just $9,000, refused to provide a declaration page or any disclosure, and stated that the check had already been sent.
I have a couple of concerns:
1. How can they decide unilaterally that the matter is settled and send a check without clear mutual agreement?
2. Is it even possible for a business liability or garage keeper’s liability policy to have a limit as low as $9,000?
I have a business policy for cleaning services, and the lowest coverage I could find was $300,000. How can a mechanic handling vehicles—potentially worth over $100,000—have such a low limit? Is this policy real, or are they just trying to brush me off?
It sounds like you’re going through a frustrating situation with your claim. To address your concerns:
1) Unilateral Settlement: Typically, a settlement requires agreement from both parties. If the adjuster is claiming that a settlement has been reached without your consent or that of your lawyer, this is concerning and could potentially be a miscommunication or an issue with the adjuster’s handling of the case. You should discuss this with your lawyer to determine the best course of action. It may be necessary to formally respond to the adjuster’s claim regarding the settlement status.
2) Policy Limits: While it’s unusual, there are scenarios where a business might carry a low liability limit, such as $9,000. This could occur if the business is very small or operates under unique circumstances, or it could reflect a decision made by the business owner based on their risk assessment. However, you’re correct that most businesses dealing with vehicles—especially mechanics—tend to have higher liability limits due to the potential for significant damages resulting from accidents or negligence.
It’s essential to approach this matter methodically. Your lawyer should definitely push for proof of the insurance policy limits and any associated documentation. If the adjuster is not cooperating, your legal team might consider further steps, including potentially filing a complaint with the insurance company or pursuing the matter through legal channels if necessary.
It’s always best to ensure you’re fully informed of your rights and options in these situations, and your attorney is there to guide you through the process.