Joe has a Business Auto Coverage Form with a $100,000 policy limit. In a claim that results in an $80,000 court award along with $50,000 for expenses due to defending the claim, what is the total amount that will be paid under Joe's Business Auto Coverage Form?

Question

Business

Ariana

2 May, 08:23

Joe has a Business Auto Coverage Form with a $100,000 policy limit. In a claim that results in an $80,000 court award along with $50,000 for expenses due to defending the claim, what is the total amount that will be paid under Joe's Business Auto Coverage Form?

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Victoria Bullock · Answer 1

The amount of $130,000 coverage will be paid under the business auto coverage form of Joe

Explanation:

The amount which will be paid under the business auto coverage form of Joe is computed as:

Amount = Claim amount which court awarded + Expenses incurred while defending

where

Claim amount which court awarded amounts to $80,000

Expenses incurred while defending amounts to $50,000

Putting the values above:

Amount = $80,000 + $50,000

Amount = $130,000

The policy limit of Joe is $100,000, but in the claim the actual incurred amount is $130,000. Therefore, the coverage amount would be $130,000.