Question 1

What is liability insurance coverage for third-party claims in Florida?

Accepted Answer

Liability insurance covers claims made against the insured by third parties (persons other than the insured) for bodily injury, property damage, or personal injury. In Florida real estate: property owners carry general liability insurance (covering slip-and-fall injuries, property damage to visitors, and other premises liability claims), landlords carry landlord liability insurance (covering claims by tenants and visitors), and businesses carry commercial general liability (CGL) insurance (covering claims arising from business operations). The policy typically provides: a duty to defend (the insurer pays for the insured’s legal defense), a duty to indemnify (the insurer pays covered claims up to the policy limits), and coverage for settlements and judgments.

Question 2

What does Florida liability insurance typically exclude?

Accepted Answer

Common exclusions: intentional acts (the insured deliberately caused the harm), contractual liability (liability assumed under a contract, unless the contract is an "insured contract"), professional liability (errors in professional services; covered by separate professional liability or E&O insurance), workers compensation claims (covered by a separate workers comp policy), auto liability (covered by auto insurance), pollution liability (covered by separate environmental insurance), and punitive damages (Florida courts have split on whether punitive damages are insurable; some policies exclude them). The insured should review exclusions carefully and obtain additional coverage for excluded risks.

Question 3

How do Florida liability insurance claims work?

Accepted Answer

Claims process: (1) An incident occurs (slip-and-fall on the property, property damage to a neighbor). (2) The injured party notifies the property owner. (3) The property owner notifies their insurance company (prompt notice is required; late notice may result in denial of coverage). (4) The insurer assigns a claims adjuster to investigate. (5) The insurer retains an attorney to defend the insured (the duty to defend). (6) The insurer evaluates the claim for settlement. (7) If the claim is settled, the insurer pays the settlement (up to the policy limits). (8) If the claim goes to trial, the insurer pays any judgment (up to the policy limits). If the judgment exceeds the policy limits, the insured is personally responsible for the excess.

Liability Insurance Coverage Third Party Claims

Liability Insurance for Third-Party Claims in Florida

Types

Common Exclusions

Claims Process

Related Terms

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