Policy limit verification is one of the most critical and often misunderstood steps in case preparation. For attorneys representing injured clients, confirming how much insurance coverage is available can dramatically influence strategy, settlement negotiations, and even whether a case is worth pursuing. Yet, despite its importance, many lawyers struggle to efficiently verify policy limits or encounter roadblocks from insurers who are reluctant to disclose this information.
This comprehensive guide will walk attorneys through the fundamentals of policy limit verification — why it matters, how to obtain it, and the best practices for ensuring accuracy and compliance with legal standards.
1. What Is Policy Limit Verification?
Policy limit verification refers to the process of determining the maximum amount an insurance company will pay on behalf of its insured for a particular claim or loss. Every insurance policy includes a limit of liability — the cap on what the insurer is obligated to pay under the terms of the contract.
For attorneys, verifying this limit means confirming the exact amount of available coverage, which may include:
- Bodily injury liability limits
- Property damage limits
- Uninsured or underinsured motorist coverage (UM/UIM)
- Umbrella or excess coverage policies
Because insurers and defendants may not voluntarily disclose this information, attorneys must know the legal and procedural methods to obtain it early in the case.
2. Why Policy Limit Verification Matters
Understanding insurance limits impacts nearly every aspect of a personal injury or insurance claim:
a. Case Valuation
The policy limit establishes the upper boundary for potential recovery from the insurer. Even if your client’s damages exceed that limit, the insurance company cannot be compelled to pay more than the coverage allows (absent bad faith). Knowing the ceiling helps lawyers set realistic expectations and craft appropriate demand letters.
b. Settlement Strategy
Early knowledge of policy limits can prevent unnecessary litigation. If a claim’s value exceeds available coverage, attorneys can focus on pursuing additional defendants or exploring underinsured motorist coverage options. Conversely, if policy limits are substantial, it may justify investing more in expert witnesses or medical evidence.
c. Ethical and Fiduciary Duties
Attorneys have an ethical obligation to act in their client’s best interest, which includes advising them of the realistic value and collectability of their claim. Without verified policy limits, it’s impossible to give sound legal advice or negotiate effectively.
d. Bad Faith and Excess Judgments
If an insurer refuses to disclose limits or unreasonably withholds information, that behavior may support a bad faith claim. Documenting requests for verification can be critical evidence later if the insurer’s actions result in an excess judgment against its insured.
3. Legal Framework for Policy Limit Disclosure
The rules governing policy limit disclosure vary by jurisdiction, but most states recognize that plaintiffs are entitled to this information in some capacity. Some states mandate disclosure by statute, while others require it through discovery or court order.
Examples of State Laws:
California (Insurance Code § 791.13): Insurers must respond to written authorization requests from their insureds to disclose policy limits.
Florida (Fla. Stat. § 627.4137): Requires insurers to disclose policy limits and provide certified copies of the policy within 30 days of a written request.
New York: While not automatic, courts can compel disclosure when “material and necessary” to the prosecution of an action.
Texas: Insurers are not required to disclose limits pre-suit, but must provide this information during litigation under discovery rules.
Knowing the specific law in your jurisdiction is crucial. Attorneys should always cite the relevant statute or rule in their request letter to compel timely and complete disclosure.
4. How to Request Verification
The verification process typically begins with a formal written request. This letter should be concise, professional, and clearly state the legal authority under which the information is being requested. Below are key steps to follow:
Step 1: Send a Demand for Disclosure
Send a policy limit demand letter to the insurance adjuster as soon as you have representation authorization from your client. Include:
- Your client’s name and date of loss
- The insured’s name (if known)
- The statutory or legal basis for your request
- A deadline for response (typically 15–30 days)
- A request for certified copies of all applicable policies
Step 2: Obtain Written Authorization
If state law requires, include a signed authorization from the insured allowing the insurer to disclose policy information. Some insurers will not release details without this consent.
Step 3: Follow Up and Document
If you receive no response, follow up in writing. Maintain meticulous records of all correspondence — they can become vital evidence if you later assert a bad faith claim for nondisclosure.
Step 4: Use Discovery Tools
If pre-suit requests fail, use formal discovery methods after filing a complaint:
Interrogatories and Requests for Production: Ask for copies of all policies, declarations pages, and endorsements.
Depositions: Question the insured or insurer representative about coverage details.
Subpoenas: In some cases, a subpoena duces tecum can compel production of policy documents.
5. Types of Coverage to Verify
Policy limits often extend beyond the primary auto or liability policy. Attorneys should investigate all potential sources of coverage, including:
Primary Auto or General Liability Policies
Umbrella or Excess Liability Policies
Employer or Commercial Policies (if a company vehicle or employee was involved)
Homeowner’s or Renter’s Insurance (in dog bite or premises liability cases)
Uninsured/Underinsured Motorist (UM/UIM) Policies
Medical Payments Coverage (MedPay)
Failing to identify an excess or umbrella policy can leave significant money on the table.
6. Verifying Accuracy and Authenticity
When insurers provide policy limit information, attorneys should confirm its accuracy:
Request the declarations page to confirm exact coverage amounts.
Check policy dates to ensure coverage was active at the time of loss.
Compare against prior or subsequent policies to identify gaps or renewals.
Verify endorsements or riders that might change the stated limits.
If anything seems inconsistent, request full policy copies rather than summaries. Many disputes arise from incomplete or misinterpreted declarations.
7. Leveraging Technology for Policy Verification
Modern legal technology has simplified the verification process. Several third-party services and law-tech platforms now offer policy limits tools, using direct insurer connections, public record databases, and claimant authorization workflows. These platforms can:
- Streamline requests to multiple carriers
- Track responses and compliance deadlines
- Provide digital documentation for case files
While not a replacement for legal diligence, these tools can save time and reduce administrative burdens, particularly for high-volume personal injury practices.
8. Common Challenges and How to Overcome Them
Attorneys often face several hurdles when seeking verification:
Unresponsive Insurers: Persist with follow-up communications and cite potential bad faith exposure for failure to disclose.
Incomplete Information: Insist on certified policy copies rather than summaries or adjuster statements.
Multiple Defendants or Insurers: Request disclosure from each separately to identify shared or excess coverage layers.
Privacy Concerns: Address these by referencing applicable laws that protect your right to policy information without breaching personal privacy.
Patience, persistence, and professionalism are key. Each communication should be documented and polite but firm.
9. Best Practices for Attorneys
Request Early: Send your verification letter at the start of the case to avoid settlement delays.
Know Your Law: Cite statutes or discovery rules to add legal weight.
Verify Everything: Don’t rely on verbal representations from adjusters.
Keep Records: Maintain detailed logs of all communications.
Use Technology: Automate tracking and storage of insurer responses.
Educate Clients: Explain what policy limits mean and how they affect recovery.
10. Final Thoughts
Policy limit verification is more than a procedural step — it’s a strategic necessity. For attorneys, it defines case value, informs negotiation posture, and protects clients from inadequate settlements. Whether through statutory demand, discovery, or advanced technology tools, verifying insurance coverage should always be a top priority.
A thorough understanding of policy limits empowers attorneys to act with confidence, advocate more effectively, and maximize recovery for their clients. In a world where insurance companies often guard their information closely, knowledge — and persistence — is your most powerful weapon.