Key Takeaways
- Pennsylvania follows a modified comparative negligence system where a claimant more than 50% at fault cannot recover
- Commercial general liability policies must comply with Pennsylvania filing requirements
- Pennsylvania has specific requirements for professional liability coverage for certain licensed professions
- Joint and several liability applies with some modifications
- Punitive damages are generally not insurable in Pennsylvania
Pennsylvania General Liability Insurance
Pennsylvania has specific requirements for general liability insurance that producers must understand.
Modified Comparative Negligence
Pennsylvania uses a modified comparative negligence system (51% rule):
How It Works
| Plaintiff's Fault | Recovery |
|---|---|
| 0% - 50% | Can recover, reduced by fault percentage |
| 51% - 100% | Cannot recover anything |
Examples
| Scenario | Plaintiff Fault | Can Recover? |
|---|---|---|
| Plaintiff 20% at fault | 20% | Yes, 80% of damages |
| Plaintiff 50% at fault | 50% | Yes, 50% of damages |
| Plaintiff 51% at fault | 51% | No, barred from recovery |
| Plaintiff 75% at fault | 75% | No, barred from recovery |
Key Point: In Pennsylvania, if you are more than 50% at fault, you cannot recover any damages. This differs from "pure comparative negligence" states.
Joint and Several Liability
Pennsylvania has modified joint and several liability rules:
Fair Share Act
Pennsylvania's Fair Share Act modifies traditional joint and several liability:
| Defendant's Fault | Liability Rule |
|---|---|
| Less than 60% at fault | Several liability only (pays own share) |
| 60% or more at fault | Joint and several liability |
Practical Effect
- Defendants less than 60% at fault pay only their share
- Defendants 60% or more at fault can be required to pay entire judgment
- Protects lower-fault defendants from paying more than their share
Commercial General Liability (CGL)
Pennsylvania CGL policies must comply with state requirements:
Required Elements
| Element | Requirement |
|---|---|
| Occurrence vs. Claims-Made | Must be clearly disclosed |
| Coverage Territory | Clearly defined |
| Limits | Per occurrence and aggregate stated |
| Defense Costs | Inside or outside limits disclosed |
| Exclusions | Standard exclusions apply |
Rate and Form Filing
- Rates must be filed with the Department
- Forms subject to approval process
- Deviations from filed rates must be documented
Professional Liability
Pennsylvania regulates professional liability for various professions:
State-Mandated Coverage
| Profession | Requirement |
|---|---|
| Attorneys | Must disclose if no coverage |
| Medical Professionals | Subject to Medical Care Availability and Reduction of Error (MCARE) Act |
| Architects/Engineers | May be required for state contracts |
| Insurance Producers | Not mandatory but recommended |
Medical Malpractice
Pennsylvania has specific medical malpractice requirements:
- MCARE Fund provides excess coverage
- Primary coverage from private insurers
- Specific limits and requirements apply
- Healthcare providers must participate
Punitive Damages
Pennsylvania limits insurer payment of punitive damages:
General Rule
- Punitive damages generally NOT insurable in Pennsylvania
- Public policy prohibits insurance for intentional wrongdoing
- Covers compensatory damages only
Exceptions
- Some vicarious liability situations may differ
- Defense costs may be covered
- Specific policy language reviewed
Under Pennsylvania's modified comparative negligence system, what happens if a plaintiff is found 51% at fault?
Under Pennsylvania's Fair Share Act, when does joint and several liability apply?