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Coverage Issues Stemming from Med Pay Claims Under Commercial Premises Liability Policies

This article sets out the typical med pay policy language, summarizes certain coverage issues that have arisen in recent years with respect to med pay claims, and discusses two cases addressing whether an insurer can be liable in bad faith to an injured person for failing to provide med pay benefits.

18 minute read November 30, 2011 at 01:02 PM
By
Chet A. Kronenberg
Coverage Issues Stemming from Med Pay Claims Under Commercial Premises Liability Policies

Medical payments (“med pay”) coverage is a part of many commercial premises liability policies. Typically, med pay covers reasonable medical expenses, regardless of fault, up to a specified limit (usually between $1,000 and $10,000) if someone is hurt on the policyholder's premises.

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