Liberty Mutual Liability Release Agreement

2 points by prirun ↗ HN
I was in an car accident while stopped at a light a couple of years ago. The at-fault driver had Liberty Mutual insurance coverage for the minimum in KY - $25K for bodily injury. The ER bill was over $22K and Liberty quickly offered the full $25K limit of their BI coverage. I was also opening an underinsured motorist claim with my insurance company. Liberty sent their Release agreement and tried several times to get me to sign it. At one point my insurance company sent a note that is was "okay with them to sign Liberty's agreement". I told both of them I wasn't signing any release until I settled with both companies. My plan was to handle it myself if I could, but if I needed to hire a law firm, I didn't want to have released either company.

Now, 21 months later (I had to have surgery for a smashed nose), I have agreed on a settlement with my insurance company, so read through the Liberty Release to sign it. But the first paragraph is worded like this:

The Claimant, (name), for the sole consideration of the sum of $25,000.00, hereby releases and forever discharges (name of at-fault driver) (hereinafter the "Released Party") and the Released Party's insurers, (Liberty Mutual Personal Insurance Company) (hereinafter called the "Company"), their heirs, executors, administrators, successors, agents, servants, employees and assigns, and all other persons, firms or corporations liable or who might be claimed to be liable, from any and all claims for loss, damages, costs, contribution, indemnification, or any other thing whatsoever on account of, or in any way growing out of, all personal injuries, death, property damage and any other type of damage of any kind, whether now known or unknown, arising out of an accident or occurrence on (date, time) at (location).

It sounds to me like that that middle clause of "and all other persons, firms or corporations liable or who might be claimed to be liable" would have also released my insurance company if I had signed the Liberty Release early.

Any opinions on that?

1 comment

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It might be best to speak with an Attorney who handles auto accidents in your state before signing the release. Depending on the State, who lives with the at-fault person/party, there can be additional coverage above the policy limits. The attorney that represents you can likely investigate or determine. If there is additional coverage, then you will want to determine future medical (surgery, meds, care) as well as non-medical items costs to help pay for future care. A life care plan can help with that also, see https://www.iclcp.com/life-care-plans