How to Conduct a Legal Policy Limit Search: Step-by-Step

How to Conduct a Legal Policy Limit Search: Step-by-Step

A personal injury or insurance claim arises, one of the most critical pieces of information is knowing the defendant’s insurance policy limits. Understanding how to conduct a legal policy limit search can make a significant difference in how a case is approached, negotiated, and resolved.

Whether you're an attorney, paralegal, or claims professional, being able to effectively determine policy limits is essential. Here's a comprehensive step-by-step guide to help you navigate the process.

What Are legal policy limit search?

Before diving into the process, it's essential to understand what legal policy limit search refers to. Insurance policy limits are the maximum amounts an insurance company will pay under a policy for a covered loss. In liability cases, these limits often define the ceiling for compensation available to a claimant. They typically include:

·       Bodily Injury Liability (per person/per accident)

·       Property Damage Liability

·       Umbrella/Excess Coverage

Knowing these figures early in a case helps guide litigation strategy, settlement expectations, and demand letters.

Step 1: Gather Preliminary Case Information

The first step in a policy limit search involves gathering all pertinent details about the accident or incident. This includes:

Full names of the parties involved

Date, time, and location of the incident

Police or incident reports

Witness information

Vehicle identification numbers (VINs), license plates, or property addresses

Any known insurance information (carrier name, policy number if available)

Accurate information increases your chances of success when contacting insurers or requesting disclosures.

Step 2: Request Voluntary Disclosure

The simplest way to determine policy limits is to ask the opposing party or their insurer to disclose the information voluntarily.

Legal Demand Letter

Draft a formal letter addressed to the insurance company or defense counsel requesting the insured’s policy limits. Your letter should include:

Client's name and claim details

Basis for the request (e.g., serious injuries, potential for damages exceeding policy limits)

Applicable statutes or case law supporting disclosure (state-dependent)

A deadline for response

State-Specific Statutes

Many states have statutes or rules requiring insurers to disclose policy limits upon written request. For example:

California (Cal. Ins. Code § 791.13) – Allows request for coverage information with written consent.

Florida (Fla. Stat. § 627.4137) – Requires disclosure within 30 days upon written request.

New York (CPLR § 3101(f)) – Permits discovery of insurance information in civil litigation.

If voluntary disclosure is denied or delayed, legal leverage may be necessary.

Step 3: Use Litigation Tools (Discovery Phase)

If you’ve filed a lawsuit, you can formally request insurance information through discovery. Common tools include:

Interrogatories

You can serve written interrogatories asking the defendant to:

Identify all insurance policies applicable to the incident

State the limits of each policy

Confirm whether any umbrella or excess coverage applies

Requests for Production

Request copies of:

The declaration page of each relevant policy

Entire policies, including endorsements and exclusions

Any reservation of rights letters

Depositions

In depositions, especially of corporate representatives or claims adjusters, attorneys can ask questions related to:

Coverage amounts

Denials or limitations

Policy stacking issues (if multiple policies apply)

Step 4: Utilize Public and Proprietary Resources

In situations where voluntary or litigation-based requests are unavailable or delayed, other tools may help uncover policy limit information.

Motor Vehicle Accident Reports

In many states, police accident reports include insurance details, including the carrier and policy number. This information can be a starting point for inquiries.

DMV or Department of Insurance

Some states allow requests for insurance verification through their Department of Motor Vehicles or Department of Insurance.

For instance, Texas offers real-time insurance verification through its DMV.

Some states allow subpoenas or written requests to verify insurance coverage.

Third-Party Vendors

Legal professionals increasingly rely on third-party vendors that specialize in insurance asset searches and background investigations. These services may include:

Insurance policy verification

Asset location

Real property records

Business ownership information

Note: Use reputable vendors, and always comply with the Fair Credit Reporting Act (FCRA) and legal ethics rules.

Step 5: Explore Umbrella and Excess Coverage

Primary liability policies often have low limits. High-net-worth individuals or corporations may also carry:

Umbrella policies – Extended coverage once the primary limits are exhausted

Excess liability policies – Stack on top of primary coverage for specific incidents

Ask about umbrella or excess policies directly in your demand letters and discovery requests. This coverage can significantly increase the potential recovery for your client.

Leverage Bad Faith Exposure

If an insurer unreasonably refuses to disclose a legal policy limit search or engages in delay tactics, this could raise the risk of bad faith exposure, especially if the case later results in a verdict exceeding policy limits.

Some strategies include:

Citing state bad faith statutes in your correspondence

Including time-limited settlement demands with full policy disclosures as conditions

Documenting all communications with the insurer

This can prompt insurers to disclose limits promptly and engage in more earnest settlement discussions.

Communicate with Your Client

Throughout the process, keep your client informed. Many clients assume policy limit information is readily available, and delays can cause confusion or frustration.

Explain:

What you are doing to obtain the information

Potential legal obstacles

Estimated timelines

This fosters trust and manages expectations while the legal process unfolds.

Final Thoughts

Conducting a legal policy limit search requires persistence, legal knowledge, and procedural skill. Each case is unique, and not all insurers or opposing parties will cooperate readily. By following a structured approach—starting with informal requests, escalating to discovery, and utilizing third-party tools—you can maximize your ability to identify coverage limits and position your case for the best possible outcome.

Knowing the policy limits is not just about collecting facts; it’s a strategic advantage. Armed with this information, attorneys can craft appropriate demand letters, evaluate settlement offers with clarity, and represent their clients more effectively in litigation or negotiation.