We said we were going to take deeper dives into policies normally carried by common interest developments this year, and it is time to take a look at the general liability policy. Have you ever looked at a certificate of insurance (that’s the one with boxes and says “Acord” at the top)? Under the Commercial Liability Section, there is a line called “Med Exp (any one person)” and it usually has $5,000 listed.

Have you ever wondered what this is about? It seems odd at first glance – if someone is suing for medical expenses, we can guess it is probably for more than $5,000. Is that all the policy will pay? Suddenly, we are concerned…

No need for concern! This line item is actually to help prevent the association from getting sued. Let’s say someone slips and falls and breaks their wrist. They let the association know they have $4,500 in medical bills and would like the association to pay for it since they tripped on a common area walkway that was lifted by an association-owned tree.

These medical bills can be submitted to the association’s insurance carrier for medical expense coverage. This will satisfy the person who fell and help keep the claim from escalating to a lawsuit which would cost much more than just the price of the medical bills. These “Med Pay” claims are seen by the underwriters as the board being proactive, since the situation is resolved without a costly liability defense claim. Once the lifted walkway is repaired, this should also be communicated to your agent and underwriter to show the association is trying to prevent future claims.

Terri Guest, CIRMS, CMCA, EBP is the Bay Area Sales & Marketing Representative for Berg Insurance Agency.