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What is a covenant not to execute? My name is Kenneth Berger, and I practice law in Columbia, South Carolina and I handle accident cases everyday.
A covenant not to execute is what you sign when you want to get all the insurance money from one company but you suspect that there may be additional insurance proceeds available from another policy.
Let me give you an example. Let's say you get into a wreck with a drunk driver, and you've got $50,000 in medical bills, yet that drunk driver only has a minimum limit of $25,000 policy. In this case, you wouldn't want to sign a release. You would sign a covenant not to execute, in essence, promising not to go after the drunk driver's personal assets if they had any, and in return, you get the $25,000 plus the opportunity to pursue additional insurance coverage, most likely in the form of "underinsured motorist coverage" through one of your own policies.
If you have any questions about this topic, please don't rely simply on an insurance adjuster's reputation or promises. Instead, request free copies of my books, call me for a free case evaluation at 803-790-2800, and make sure that all your rights are protected. I look forward to speaking with you.
How A Covenant Not to Execute Works
For 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 Personal Injury Lawyer After a Car Wreck
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 South Carolina Accident Lawyer 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 — contact the Law Office of Kenneth Berger for a free consultation. A South Carolina car accident lawyer can help injured people after an accident by handling the crash investigation, negotiating your insurance claims, and representing you in any lawsuits that you need to claim a full and fair recovery.
The attorneys at the Law Office of Kenneth E. Berger have years of experience handling cases like yours, and would be honored to help you and your family with the legal recovery process while you focus on healing. Our offices are conveniently located in Columbia and Myrtle Beach, and we proudly serve the Sumter and Florence areas, as well as the entire state of South Carolina. Call us today at 803-790-2800 (Columbia, SC) / 843-427-2800 (Myrtle Beach, SC), or start a live chat 24/7 with a real, live person to arrange a free and confidential consultation.
For even more information relevant to your car accident claim, download my free guide to South Carolina auto accidents. It's full of helpful advice and tips to consider when pursuing an auto claim in South Carolina.