Many Georgia residents take out umbrella policies to provide liability coverage above and beyond their standard auto insurance. Umbrella policies are especially beneficial to victims who sustain financial losses in excess of the normal car insurance policy. For example, if your injuries following a car accident cost you $500,000 in lost wages and medical expenses, and the other driver’s policy only has a $250,000 limit, an umbrella policy can make up that difference.
Government Employees Insurance Company v. Gordon
Of course, that assumes that the company that issued the umbrella policy does not attempt to disclaim coverage. As we know all too well, insurers will never hesitate to try and avoid paying when they can. Here is a recent federal case involving the application of Georgia law in which a court addressed an insurance company’s attempt to avoid its obligations.