Recovering Damages Beyond Insurance Policy Limits in Washington

February 07, 2025

in Personal Injury

When you’re injured in an accident or suffer a loss due to someone else’s negligence, you may look to the at-fault party’s insurance coverage for compensation. While insurance policies are designed to cover damages, policy limits can restrict the amount you’re able to recover. What happens when your losses exceed these limits? In Washington State, there are several ways to pursue additional compensation beyond an insurance policy’s limits.

An experienced Olympia injury attorney can evaluate your case, identify all potential sources of compensation, and navigate the complexities of Washington’s legal system. Call Brumley Law Firm today at (833) 832-2727 today.

Understanding Insurance Policy Limits

Insurance policies typically have coverage limits – the maximum amount an insurance company will pay for a claim. For example, a driver’s liability insurance might provide coverage up to $50,000 per person and $100,000 per accident. If your medical bills and other losses exceed $50,000, you may find yourself struggling to cover the remaining costs.

These limits apply to various types of insurance policies, including:

Policy limits are often inadequate, especially in cases involving severe injuries, significant property damage, or wrongful death. In such situations, understanding your options for recovering damages is crucial.

recovering damages beyond insurance policy limits

Pursuing Damages Beyond Policy Limits

While insurance policy limits may seem like a hard ceiling, Washington law provides avenues for pursuing additional compensation. Here are some potential strategies:

1. Suing the At-Fault Party Personally

If the at-fault party’s insurance coverage is insufficient, you can file a lawsuit against them personally. This allows you to seek compensation from their personal assets. However, this approach has limitations:

  • The at-fault party must have sufficient assets to cover your damages.
  • Even if you win your case, collecting from the at-fault party can be challenging if they lack the financial resources to pay.

2. Umbrella or Excess Insurance Policies

Some individuals and businesses carry umbrella or excess insurance policies, which provide additional coverage beyond standard policy limits. If the at-fault party has such coverage, you can file a claim under the umbrella policy to recover additional damages.

3. Underinsured Motorist Coverage

In auto accident cases, your own insurance policy may provide relief. Washington State requires insurers to offer underinsured motorist (UIM) coverage, which helps cover your damages when the at-fault driver’s insurance is insufficient. If you’ve purchased UIM coverage, you can file a claim with your insurer for the difference between your total damages and the at-fault driver’s policy limits.

4. Bad Faith Claims Against the Insurance Company

Insurance companies are required to act in good faith when handling claims. If an insurer unreasonably refuses to settle a claim or fails to pay out the policy limits in a timely manner, you may have grounds for a bad faith lawsuit. In Washington, successful bad faith claims can result in compensation that exceeds the policy limits, as well as additional damages and attorney’s fees.

5. Vicarious Liability

In some cases, you can pursue additional compensation from a third party that shares liability for the accident. For instance:

  • Employers can be held responsible for the actions of their employees under the legal principle of respondeat superior.
  • Vehicle owners may share liability if they negligently allow someone to drive their car.
  • Manufacturers can be held accountable if defective products contributed to the accident.

Identifying third-party liability can help you access additional sources of compensation.

Legal Help for Complex Cases

Pursuing damages beyond insurance policy limits is often complex and requires a thorough understanding of Washington law. A skilled attorney from our firm can evaluate your case, identify all available options, and fight to secure the compensation you deserve.

At Brumley Law Firm, we are committed to helping accident victims and their families recover the compensation they need to move forward. If you or a loved one has been injured, don’t let insurance policy limits stand in the way of justice. Call us now at (833) 832-2727 or complete our online form to schedule your free consultation today. Let us help you explore all your legal options and secure the financial recovery you deserve.