Overbroad Indemnification Account

As a result of an automobile collision caused by her husband, a Progressive insured was widowed and her nephew was left with permanent brain damage. As the owner of the vehicle, the widow was financially responsible for the damages suffered by her nephew. Unfortunately, Progressive failed to protect her.

Progressive had an opportunity to settle the claim of the brain-damaged nephew for the policy limits of $10,000.00. However, Progressive failed to accept the terms of the release proposed by the widow's attorney.

As a result, the widow was forced to attend a trial and suffer a significant judgment against her.

Ricci~Leopold, P.A. sued Progressive for Progressive's failure to protect its insured. Prior to trial, USAA settled the case for a confidential amount.