Glossary

Medical payments coverage

No-fault liability coverage that pays small medical bills for people hurt on your premises or by your operations, whoever was at fault.

Also called: med pay, medical payments, medpay, Coverage C, medical expense coverage

Medical payments is Coverage C of the ISO CG 00 01 general liability form. It pays reasonable medical expenses for bodily injury caused by an accident on your premises or arising from your operations, regardless of fault. Say a customer trips on a loose mat, bruises a hip and needs X-rays (a hypothetical): med pay can cover those bills without anyone proving negligence.

The limit is small and per person; $5,000 is a common choice. Expenses must be incurred and reported to the insurer within one year of the accident date, and the injured person may be asked to submit to an exam. Coverage C does not apply to you or your employees, to anyone entitled to workers' compensation benefits, to athletes injured in a sport or athletic activity you sponsor, or to injury within the products-completed operations hazard. Payments also count against the each-occurrence limit.

Its value is practical. Paying a modest bill quickly can defuse a grievance before it becomes a lawsuit, and it costs little to buy. It is not an admission of fault, and it does not release the injured person's right to sue. Do not confuse it with the medical payments option on a commercial auto policy, which covers occupants of your vehicles. The guide on premises liability claims shows how slip-and-fall claims move.

Last reviewed October 10, 2026

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Related terms

Commercial general liability (CGL) The standard business policy for claims that your operations, premises or products injured someone or damaged property, usually on ISO form CG 00 01. Bodily injury Physical injury, sickness or disease suffered by a person, including death resulting from it; the harm that triggers liability coverage for injuries. Per-occurrence limit The most a liability policy will pay for all damages arising from a single occurrence, however many people are hurt or claims are made. Premises liability A property owner's or occupier's legal responsibility for injuries to visitors caused by unsafe conditions on the property, insured mainly under the CGL. Duty to defend A liability insurer's obligation to pay for your defense of a lawsuit that could potentially fall within coverage, which is broader than its duty to pay.

Related guides

Inside the CGL policy: Coverages A, B and C How the ISO commercial general liability form's three coverages work: the triggers, the key exclusions, supplementary payments and which limit each claim uses. A customer slip-and-fall liability claim, step by step, through renewal A hypothetical composite walkthrough of a general liability slip-and-fall claim: notice, reservation of rights, defense, med pay, settlement and loss runs. Commercial auto insurance: what it covers and what it leaves out How a business auto policy works: liability, physical damage, who counts as an insured, which vehicles are covered, common gaps and what drives the premium. Premises liability: how slip-and-fall claims are handled How a slip-and-fall claim moves from the incident to settlement or suit, what the plaintiff must prove, what general liability pays, and what to do first.

Related industries

Child care center insurance What child care centers need: GL with abuse and molestation coverage, state licensing insurance rules (Texas, Minnesota), transport auto, and workers comp. Gym and fitness studio insurance What gyms and fitness studios need: GL and professional liability, how far member waivers go, abuse and molestation limits, equipment, AEDs and workers comp.

Related en español

Seguro de auto comercial: qué cubre y qué deja fuera Cómo funciona la póliza de auto comercial: responsabilidad civil, daños físicos, quién es asegurado, qué vehículos cubre, huecos comunes y qué fija la prima.