Policy Limit Tracing Tactics for Plaintiff Attorneys

Policy Limit Tracing, one of the first and most critical tasks for plaintiff attorneys is identifying the available insurance coverage. Knowing the defendant’s policy limits early helps determine case value, frame settlement discussions, and assess whether to invest substantial time and resources in litigation.

However, insurance companies and defense counsel do not always readily disclose policy limits, especially in jurisdictions where such information is not automatically discoverable. For plaintiff attorneys, this means applying strategic “policy limit tracing” tactics to obtain this crucial information efficiently and ethically.

This article outlines the most effective tactics for uncovering insurance policy limits and addresses both legal and practical considerations to help plaintiffs’ counsel gain the upper hand early in a case.

Send an Early, Targeted Demand Letter

A well-crafted demand letter sent shortly after a loss can pressure insurers into disclosing Policy Limit Tracing. Include a request for the insurance declaration page or certified copy of the policy, and cite applicable statutes or rules that support your request.

Key Elements:

State the legal basis for the request (e.g., discovery rules, bad faith case law).

Include a time deadline for the insurer’s response (typically 10–30 days).

Highlight the seriousness of the injuries and potential excess exposure.

Offer a conditional settlement within policy limits.

This shows you're ready to resolve the matter reasonably—while preserving bad faith leverage if the insurer refuses.

Cite Applicable Statutes and Rules

Many jurisdictions have laws that require insurers to disclose policy limits upon written request. For example:

California: Insurance Code § 791.13 and CCP § 2017.210

Florida: Fla. Stat. § 627.4137 requires disclosure of policy details within 30 days.

New York: CPLR § 3101(f) permits discovery of insurance agreements.

Knowing and citing these laws in your communications can compel quicker, more complete responses.

Pro Tip:

Create a state-specific template referencing these statutes for use in all relevant cases.

Use Formal Discovery Strategically

If voluntary efforts fail, leverage discovery tools to compel disclosure. Include tailored interrogatories and requests for production asking for:

Identity of all insurers and policy numbers

All primary, umbrella, and excess policies

Any erosion of limits due to prior payments

Terms and endorsements relevant to coverage

Even in states where insurance information isn’t automatically discoverable, judges are often sympathetic to plaintiffs seeking it—especially when damages clearly exceed minimum coverage.

Depose the Defendant or Corporate Representative

Deposing the insured or a corporate representative can produce valuable insurance information. Ask questions like:

“What insurance coverage did you have in place on the date of the incident?”

“Have you notified your insurer of this claim?”

“Are there any umbrella or excess policies?”

If the defense refuses to answer, you can file a motion to compel, supported by court precedent.

Engage in Informal Conversations with Defense Counsel

Not all Policy Limit Tracing information is obtained through combat. In some cases, defense attorneys will disclose policy limits informally to promote early settlement. Build a cooperative tone in early case management conferences or settlement negotiations, and consider saying:

“We’re willing to explore resolution, but we need to know what coverage is available to make a realistic demand.”

Defense attorneys often recognize the advantage of early resolution, particularly in clear liability cases, and may be willing to disclose limits voluntarily.

Investigate Public Records and Third-Party Sources

Don’t underestimate the value of public records and industry databases. Some effective avenues include:

Secretary of State Filings – for corporate defendant information

DMV or DOT Records – to confirm vehicle ownership and commercial registration

FMCSA SAFER System – for commercial motor carriers’ insurance filings

State Insurance Departments – may have data on surplus lines coverage

For trucking, rideshare, or commercial cases, the insurer’s identity and policy type may already be publicly accessible.

Issue a Time-Limited Policy Limits Demand

In severe injury or wrongful death cases, send a time-limited demand to resolve the case within Policy Limit Tracing. Include:

Detailed medical records and bills

A summary of liability and damages

A firm expiration date (30 days is typical)

A clear offer to settle for the policy limit

If the insurer fails to respond or denies coverage unreasonably, this can lay the groundwork for a bad faith claim, putting pressure on the insurer to disclose limits or resolve the matter promptly.

Use Third-Party Subpoenas if Necessary

If you can’t obtain information through the defendant, consider issuing a subpoena directly to the insurance carrier. While courts vary on whether this is allowed before a judgment, in cases with compelling facts (e.g., catastrophic injuries), judges may allow limited early discovery from insurers.

Retain Coverage Counsel in Complex Cases

In multi-defendant or high-stakes litigation involving excess, umbrella, or offshore policies, consider involving an attorney who specializes in insurance coverage. Coverage counsel can:

Decode complex policy language

Identify hidden exclusions or erosion

Advise on structuring global settlements

This tactic is especially valuable in class actions, toxic torts, or cases with overlapping commercial policies.

Leverage Bad Faith Law Strategically

The threat of bad faith litigation is one of the strongest tools plaintiff attorneys have in tracing policy limits. Insurance companies must act in good faith to protect their insured from excess judgments.

When damages clearly exceed coverage and liability is likely, insurers have a duty to settle within limits if given the opportunity. Denial or delay in disclosure can be evidence of bad faith.

Tactical Advice:

Document every communication with the insurer. If the claim goes to trial and results in an excess verdict, you’ll have a record to support a follow-on bad faith suit.

Conclusion

Policy Limit Tracing is a vital part of effective plaintiff advocacy. While defense counsel may be reluctant to share this information, persistence and strategic pressure often yield results. Whether through statutory demand letters, targeted discovery, or informal negotiation, knowing the limits of available coverage gives plaintiff attorneys significant leverage to resolve cases efficiently and fairly.

By mastering these tactics and using jurisdiction-specific tools, you can ensure your clients receive the maximum possible compensation—and position your firm for success in even the most challenging insurance cases.