What Is A Policy Limits Tender

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A policy limits tender isn’t necessarily an admission of full responsibility, but rather a strategic move by the insurer to close your case quickly and for the lowest possible amount. They are essentially saying, “This is the maximum we’re willing to pay,” hoping you’ll settle for less than your claim is truly worth. Before you sign anything, it’s critical to understand the implications and what rights you may be giving up.

The timing of these tenders is also suspect. Insurance companies often make them before a full investigation is complete, or before they’ve had a chance to properly evaluate all your medical records and future care needs. They bank on you being overwhelmed by the process and accepting the offer without fully knowing your options. Don’t fall into that trap.

As a personal injury attorney practicing in San Diego for over 13 years, I’ve seen firsthand how insurance adjusters exploit these tactics. I was trained by a former insurance defense attorney, giving me intimate knowledge of how insurance companies evaluate, devalue, and deny claims. Knowing their playbook is essential to protecting your rights.

What should I do if an insurance company sends me a policy limits tender?

First, do not sign anything. A policy limits tender is a starting point for negotiation, not the final word. Immediately consult with an experienced personal injury attorney. They can assess the full value of your claim, considering all your economic and non-economic damages, and determine if the tender is fair.

An attorney will examine the policy itself to verify the coverage limits, review the accident report and police investigation, and gather all relevant medical records and documentation. They will then build a strong case to demonstrate the full extent of your losses and negotiate with the insurance company on your behalf.

Don’t underestimate the importance of independent legal counsel. Insurance adjusters are skilled negotiators who are ultimately looking out for their company’s best interests. You need someone equally skilled on your side to level the playing field and ensure you receive the compensation you deserve.

What types of damages should I consider when evaluating a policy limits tender?

The full scope of your damages extends far beyond just medical bills and lost wages. It’s crucial to account for all past and future expenses, as well as non-economic losses like pain, suffering, and emotional distress. These include:

• Medical Expenses: All past and future medical bills related to the accident, including hospital stays, surgeries, therapy, and medications.
• Lost Wages: Compensation for lost income, both past and future, due to your injuries and inability to work.
• Property Damage: The cost of repairing or replacing your vehicle or other damaged property.
• Pain and Suffering: Compensation for the physical and emotional distress caused by your injuries.
• Future Care Costs: Expenses related to ongoing medical treatment, rehabilitation, and long-term care.
• Loss of Enjoyment of Life: Compensation for the inability to participate in activities you once enjoyed.

What happens if I reject a policy limits tender and the insurance company refuses to increase their offer?

Rejecting a policy limits tender doesn’t automatically mean you’ll be heading to trial. It opens the door for further negotiation, and your attorney can employ various strategies to strengthen your case. If negotiations stall, you have the right to file a lawsuit to pursue your claim in court.

Before filing suit, your attorney will thoroughly evaluate the strength of your case and advise you on the best course of action. Litigation can be a complex process, but it’s often necessary to achieve a fair settlement, particularly in cases involving serious injuries or significant damages.

Can the insurance company rescind a policy limits tender?

Yes, unfortunately, an insurance company can rescind a policy limits tender, even after it’s been offered. This is often done if they discover new information that casts doubt on your claim or if you engage in actions that could be viewed as detrimental to your case. This could include posting about your injuries on social media or providing inconsistent statements.

That’s why it’s critical to avoid discussing your case with anyone other than your attorney. Any statements you make could be used against you in negotiations or litigation. Protect your rights by maintaining strict confidentiality.

What is “bad faith” and how does it relate to policy limits tenders in San Diego?

Under California law, insurance companies have a duty of good faith and fair dealing in handling claims. Refusing to settle a valid claim within policy limits when liability is clear, or failing to conduct a fair investigation, can be considered “bad faith.” In San Diego, if an insurer acts in bad faith, they may be liable for damages beyond the original policy limits, including punitive damages.

Bad faith tactics often involve unreasonably delaying the claim process, undervaluing your injuries, or denying your claim without proper justification. An experienced attorney can identify bad faith conduct and pursue legal action to hold the insurance company accountable.