Can You Sue for More Than Policy Limits in South Carolina?

Yes—in South Carolina, you can sue for more than the policy limits if you can prove that the at-fault party has additional assets or if the insurance coverage is insufficient to cover the cost of your damages. Do either of these circumstances apply to your situation? 

It can be hard to know if you are able to sue for more than policy limits in South Carolina based solely on the details of your situation. However, the sooner you contact an Atlanta personal injury lawyer, the sooner your attorney can help you understand your legal options. 

Suing Beyond Policy Limits in South Carolina

While insurance policies set financial caps, there are certain circumstances where a claimant may pursue compensation beyond these limits. These scenarios include:

Personal Assets of the At-Fault Party

If a defendant has significant personal assets, the injured party may sue them directly for additional damages. In such cases, a court may award a judgment beyond the policy limits, allowing the plaintiff to collect compensation in the following ways: 

• Wage garnishment
• Bank levies
• Property liens 

Multiple Defendants

When multiple parties share liability for an accident or injury, claimants may seek compensation from additional at-fault parties. This approach distributes financial responsibility across multiple insurance policies and potentially increases available recovery.

Bad Faith by the Insurance Company

South Carolina law prohibits insurers from engaging in bad faith practices. If an insurance company unreasonably denies or delays a valid claim, fails to settle within policy limits when appropriate, or acts in bad faith, the claimant may sue for damages exceeding policy limits. 

From there, it’s entirely possible that the courts may impose punitive damages against insurers who are found guilty of engaging in bad faith practices.

Excess or Umbrella Insurance Policies

Some individuals and businesses carry excess liability or umbrella policies that provide additional coverage beyond standard limits. If the at-fault party has an umbrella policy, additional funds may be available to compensate the injured party.

Employer Liability in Certain Cases

If a negligent party was acting within the scope of their employment at the time of the accident, their employer may be held vicariously liable under South Carolina’s respondeat superior doctrine. 

Furthermore, Employers often have higher policy limits than individuals, which can potentially increase the amount of compensation.

Punitive Damages

South Carolina allows plaintiffs to seek punitive damages in cases involving gross negligence or willful misconduct. Punitive damages serve to punish egregious behavior and deter similar actions. 

While insurance policies typically exclude coverage for punitive damages, they can result in judgments exceeding policy limits.

Collecting a Judgment Beyond Policy Limits

Winning a judgment beyond policy limits does not automatically guarantee full collection. Plaintiffs must pursue collection efforts against the defendant’s assets, which may include:

• Wage garnishment: A portion of the defendant’s wages may be withheld until the judgment is satisfied. 
• Bank account levies: Courts may authorize the seizure of funds from the defendant’s bank accounts. 
• Property liens: A lien may be placed on real estate or personal property, preventing its sale until the debt is paid.

However, if the defendant lacks sufficient assets, collecting the full judgment may be challenging.

South Carolina’s Modified Comparative Negligence Rule

South Carolina follows a modified comparative negligence rule. This means that the compensation a victim is entitled to will be reduced by their percentage of fault. That said, if the victim is more than 50% at fault for the incident, they cannot recover damages at all. 

This rule affects claims exceeding policy limits. Insurers may argue that shared liability is involved in an effort to minimize their payouts.

Assignment of Bad Faith Claims

In some cases, defendants facing judgments exceeding their policy limits may assign their rights to sue their own insurer for bad faith to the plaintiff. 

This allows the injured party to pursue additional compensation directly from the insurance company rather than relying solely on the defendant’s assets.

Settlement Negotiations and Policy Limits

Settlement negotiations play a crucial role in cases where damages exceed policy limits. Plaintiffs may negotiate structured settlements or lump-sum payments from multiple sources, including excess insurance policies, employer liability coverage, or personal assets.

Call Our Atlanta Personal Injury Law Firm to Learn if You Can Sue for More than Policy Limits in South Carolina  

While insurance policy limits define the maximum payout an insurer must provide to victims of the insured party’s actions, South Carolina law provides different ways to pursue compensation beyond these limits. Whether or not this applies to you will depend on the details of your case. 

Additionally, collecting a judgment beyond policy limits often requires strategic action by an experienced lawyer. At John Foy & Associates, we’re here to help. Reach out to get the Strong Arm today—we have over 350 years of legal experience. 

Together, our team has recovered more than $1 billion in compensation for personal injury victims in situations similar to yours. Let us do the same for you. To learn more about our law firm and what our Atlanta personal injury attorneys can do for you, call us as soon as possible.