The SEF No. 44 Family Protection Endorsement
The Family Protection Endorsement or SEF 44 provides insurance protection to named insureds and their families who have been injured in car accidents where the at-fault driver is either uninsured or inadequately insured. It is optional insurance for which a small premium is paid over and above the premium payable under your standard automobile coverage.
How does it work?
If you have been injured in a car accident and have the right to collect money from the at-fault driver, you may not be able to fully recover if that driver doesn’t carry enough insurance, has no insurance at all or doesn’t have sufficient assets to cover the amount adjudged or agreed to be owing. The SEF 44 coverage pays the difference between your claim amount and amounts you can collect from other sources up to a total maximum recovery equal to the limit of your own third-party liability insurance.
For example, if the at-fault driver has a policy limit of $200,000 and you have a third-party liability limit of $1 million, you could potentially claim up to $800,000 under your SEF 44 endorsement.
Why is it important?
The SEF 44 coverage applies to everyone who might be injured in the accident. Let’s say the at-fault driver had a policy limit of $1 million. If you also have a third-party liability limit of $1 million, the SEF 44 coverage would not apply. While this may seem like a lot of money, if five people were injured in the accident, everyone would have to share the at-fault driver’s policy limit of $1 million unless outside recovery was possible. This may result in each of the injured parties receiving less compensation for their personal injuries than they would normally be entitled to.
At Law Fifty One, we strongly recommend that you carry at least $2 million in third-party liability insurance. Not only does this protect you and your family if you have suffered serious personal injuries in a motor vehicle accident, it can protect your assets if you are the at-fault driver in an accident causing personal injuries to others. The small increase in premiums is always worth the extra peace of mind!
For more information
please get in touch we will be happy to help.