Which type of liability limit applies to Medical Payments coverage?

Medical Payments coverage typically operates under a per person liability limit. This means that there is a specified maximum amount that the insurer will pay for medical expenses related to a single individual who is injured in an accident.

This model is beneficial as it directly correlates the coverage to individual claims, ensuring that each injured party has their medical expenses covered up to the designated limit without affecting the payout for other claimants. For example, if an accident involves multiple injuries, each person's medical expenses can be claimed up to the per person limit, allowing for equitable distribution of benefits among all affected individuals.

In contrast, aggregate limits apply to total claims made during a policy period, while per occurrence limits would apply to the total of all claims arising from a single incident. Combined limits can cap payouts across various types of coverage within a policy. However, for Medical Payments specifically, the focused approach of a per person limit is what dictates how coverage operates. This structure ensures that each individual’s medical costs are prioritized without depleting the overall liability coverage limit too quickly.