What Does the Insurance Company Owe You?

Matthew Powell

When you are injured or harmed in some way as a result of another person’s negligence, you have the right to take that person to court.  Of course, depending on the type of incident, you might find yourself taking on an insurance company, rather than the individual.  This often happens in cases involving Tampa auto accidents.  After all, it is the insurance company that will foot the bill, typically.  The same will occur in many instances when a company is accused of negligence. However, if you are the one at risk of being sued, you will want to be sure that your insurance policy will cover the costs of an accident.

In order to better understand this concept, consider the recent court case heard in the Ninth District Court in Washington.  The case involved a tattoo parlor owner and a customer who contracted flesh-eating bacteria after having her tongue pierced.  The owner of the parlor had taken out an insurance policy with Scottsdale Insurance Company, but the insurer refused to cover the expenses associated with the customer, stating that the policy did not cover business operations.

The court sided with Scottsdale after considering evidence that made it clear that Burns (parlor owner) had agreed to and paid for a policy that was only to cover the building and the company for which he was sole owner.  Though Burns technically owned the tattoo parlor, it was operated under an LLC.  The LLC was not covered by the policy and because Burns was not officially the owner of the parlor (the LLC owned it), the policy would not cover the accident.  The customer who received the piercing racked up over $400,000 in medical expenses as a result of the flesh-eating bacteria, but would not receive a dime from the insurance company and Burns is now placed in an uncomfortable and unwelcome position because he did not choose the right type of insurance policy.

Matthew Powell

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