What is "Medical Payments" coverage? This is something that has come up quite frequently when it comes to General Liability (CGL) and Business Insurance. It sounds simple enough, right? If someone is injured, Medical Payments would apply, but that is not always the case. Medical Payments pays medical expenses resulting from bodily injury caused by an accident on premises owned or rented by the insured, on ways next to such premises, or caused by the insured operations. Also worth noting, it only covers medical and funeral expenses incurred within one year of the accident and only if the injured person agrees to an examination by a doctor designated by the insurance company. Payments of this coverage cannot exceed the coverage limit, so if the policy limit is $10,000 it cannot exceed this amount.
Now, as with any coverage, there exclusions. Based on my experience here in Austin, TX, the one that comes up the most, especially since Workers Compensation is not required in Texas is the following: no coverage for injury to any insured. The coverage is intended for customers or other persons who are temporarily on the insured's premises (much like your Homeowners Insurance Medical Payments coverage). This exclusion applies to employees. Yes, another reason every business owner should consider Workers Compensation coverage. There are other exclusions to this coverage, so make sure to read your policy. If you have questions, please let me know. I have had many policy reviews and conversations with business owners about this coverage and you would be surprised how many assumed it covered employees. I even had one insured tell me their agent told them it included employees.
If you have any questions about this coverage, or any other Business Insurance questions, please feel free to contact me. Business Insurance can be confusing at times. Let us help you navigate the waters.
Example of Medical Payments: