Under Coverage E, what happens if a claim is made or lawsuit for bodily injury or property damage caused by an insured occurrence?

Under Coverage E, what happens if a claim is made or lawsuit for bodily injury or property damage caused by an insured occurrence?

• A. Pay legal defense to defend insured and pay damages up to the limit of liability
• B. Deny the claim
• C. Pay only medical expenses to claimant
• D. Pay for property repairs only

Answer: (A)

Coverage E provides personal liability protection. When an insured occurrence leads to a claim or lawsuit for bodily injury or property damage, the insurer defends the insured in court and pays the damages the insured is legally responsible for, up to the policy’s limit of liability. Defense costs are included in that protection, so the insurer handles the defense and pays damages rather than leaving the insured to pay out of pocket. Medical expenses to the claimant would come from a separate medical payments coverage, not from this liability protection, and paying only for property repairs would not address the liability for bodily injury or the legal defense.

Coverage E provides personal liability protection. When an insured occurrence leads to a claim or lawsuit for bodily injury or property damage, the insurer defends the insured in court and pays the damages the insured is legally responsible for, up to the policy’s limit of liability. Defense costs are included in that protection, so the insurer handles the defense and pays damages rather than leaving the insured to pay out of pocket. Medical expenses to the claimant would come from a separate medical payments coverage, not from this liability protection, and paying only for property repairs would not address the liability for bodily injury or the legal defense.