What is a Covenant Not to Execute Judgment?

South Carolina car accidents are often settled by way of a "Release." In other instances, a Covenant Not to Execute Judgment ("Covenant") is preferable. A Covenant is used in cases where you want to collect funds from the at-fault driver's liability policy, but preserve the right to seek compensation from other insurance policies.

How It Works

covenant not to executeFor instance, if the at-fault driver only has $50,000.00 in insurance coverage, but you have $100,000.00 in medical bills, you will want to file an underinsured motorist ("UIM") claim with your auto insurance company. By signing the Covenant, you can go ahead and obtain the $50,000.00 from the at-fault driver's liability policy, then seek additional funds from your UIM policy. In return for the $50,000.00, you covenant (i.e. promise) not to execute any judgment against the at-fault driver. In other words, you promise not to go after the at-fault driver's personal assets.

Speak With a Lawyer 

The subtle difference in wording between a Release and a Covenant can have a huge difference on the amount of money you recover. Rather than trying to sort through the legalese by yourself, I encourage you to at least consult with a South Carolina attorney before signing anything.

Contact Kenny Berger

If you would like help reviewing a Covenant to ensure your rights are protected - or to find out whether additional compensation may be recovered from another insurance company - call me at (803) 790-2800. All consultations are free. For even more information relevant to your car accident claim, download my free guide to South Carolina auto accidents ebook. It's full of helpful advice and tips to consider when pursuing an auto claim in South Carolina.