The $5,000 included in your insurance policy covers immediate medical expenses for bodily injury to a third party. This sub-limit applies separately for each person, but does not apply to the Named Insured or their crew members.


To be eligible for coverage, the injury must have been caused by an accident on premises you own or rent or because of your operations. These expenses could include first aid administered at the time of the accident; necessary medical, surgical, x-ray, and dental services; and necessary ambulance, hospital, or professional nursing services. Note that this does not cover injury to your employees.


The theory behind this no-fault coverage is that providing immediate first aid for the injured party promotes goodwill and reduces the likelihood of a lawsuit. However, the injured party still has the right to sue you for negligence if they choose to. In that case, the claim would be covered up to the General Liability Insurance limit (subject to other conditions and exclusions in the policy). Medical payments are NOT outside the policy occurrence and aggregate limit ($1 or $2 million), which means they do reduce this limit.