§ 108 Liability Insurance Coverage Scope

This law says what counts as liability insurance and what extra coverages can be added to it, like medical or disability benefits, and also covers certain professional malpractice and third‑party injury situations.

Key Takeaways

•Liability insurance covers injury or property damage to other people, but not worker’s comp, carrier, boiler, or vehicle insurance.
•You can add medical, hospital, funeral, and disability benefits to a liability policy, even if the insured isn’t legally liable (subsection (b)(1) and (b)(2)).
•The law also allows coverage for injuries you suffer from a third‑party’s wrongdoing when that third party doesn’t have liability insurance (subsection (c)).
•Professional malpractice liability for licensed health and other professionals is covered under this definition (subsection (d)).
•Disability insurance rules in the rest of the code don’t apply to the insurance described here (subsection (e)).

Example

A person buys car liability insurance and also adds a medical expense rider that pays for hospital bills if they or someone else gets hurt in a crash, even if the driver isn’t legally at fault.

The basic liability policy covers damage to other people or property. The added medical rider (as described in subsection (b)(1)) pays for medical, hospital, funeral, or disability costs for the driver or others injured, no matter who is legally responsible.

Liability insurance includes: (a) Insurance against loss resulting from liability for injury, fatal or nonfatal, suffered by any natural person, or resulting from liability for damage to property, or property interests of others but does not include worker’s compensation, common carrier liability, boiler and machinery, or team and vehicle insurance. (b) (1) With respect to operations or property covered by a policy of liability insurance as defined in subdivision (a), insurance of medical, hospital, surgical and funeral loss or expense of the insured or other persons injured, and in the case of an automobile liability policy disability benefits to the insured or other persons injured and in the event of their death, funeral and accidental death benefits to their dependents, beneficiaries or personal representatives irrespective of legal liability of the insured, when issued with or supplemental to the insurance defined in subdivision (a); (2) When issued with or supplemental to the insurance defined in subdivision (a), disability insurance covering the insured and members of his household, or other persons who customarily operate any automobile covered by such a policy and who are named in such policy; and such disability insurance may cover against accidental injury, death or dismemberment caused by any or all hazards as defined in such coverage; (c) Insurance covering injuries sustained by an insured resulting from a tort committed by a third party against which such third party is not himself covered by liability insurance; (d) Insurance coverage against the legal liability of the insured, and against loss, damage, or expense incident to a claim arising out of the death or injury of any person as the result of negligence or malpractice in rendering professional services by any person who holds a certificate or license issued pursuant to Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code, a license issued pursuant to the Osteopathic Initiative Act, or license as a community clinic defined in subdivision (a) of Section 1203 of the Health and Safety Code, or a license as a health facility pursuant to Chapter 2 (commencing with Section 1250) of Division 2 of the Health and Safety Code. (e) The provisions of this code relating to disability insurance do not apply to insurance defined in this section. (Amended by Stats. 1976, Ch. 152.)

Key Takeaways

•Liability insurance covers injury or property damage to other people, but not worker’s comp, carrier, boiler, or vehicle insurance.
•You can add medical, hospital, funeral, and disability benefits to a liability policy, even if the insured isn’t legally liable (subsection (b)(1) and (b)(2)).
•The law also allows coverage for injuries you suffer from a third‑party’s wrongdoing when that third party doesn’t have liability insurance (subsection (c)).
•Professional malpractice liability for licensed health and other professionals is covered under this definition (subsection (d)).
•Disability insurance rules in the rest of the code don’t apply to the insurance described here (subsection (e)).

Example

A person buys car liability insurance and also adds a medical expense rider that pays for hospital bills if they or someone else gets hurt in a crash, even if the driver isn’t legally at fault.

Key Takeaways

Example

Key Terms

References

§ 108 Liability Insurance Coverage Scope

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References