Question

While out in the company car bringing papers to a client to sign, Jack makes a bad left turn, and gets into an accident with an SUV carrying a sports team. Five people were injured, and the injuries totalled $240,000. Jack's company's BAP only covers up to $100,000 in personal injury. Which policy might help cover the remaining liability caused by Jack's accident?

Answer 1

An umbrella policy may provide additional coverage to pay the remaining $140,000 in personal injuries caused by Jack's accident after the company's BAP limit is reached.

Step-by-step explanation:

The insurance policy that might help cover the remaining liability caused by Jack's accident, beyond the $100,000 covered by his company's Business Auto Policy (BAP), may be an umbrella policy. This type of policy provides additional coverage when the limits of the primary policy are exceeded. In the case of Jack's accident with the SUV, if the company has an umbrella policy, it could potentially cover the additional $140,000 in personal injuries that exceed the BAP limit.