Medical Payments Coverage

Medical payments coverage, often abbreviated as Med Pay, is a goodwill provision within a Commercial General Liability policy. It pays reasonable medical expenses for persons injured on the insured's premises or due to the insured's operations without requiring a determination of fault. The coverage has a per-person limit, typically ranging from $5,000 to $10,000, and is designed to handle minor injuries quickly before they escalate into lawsuits. Medical payments coverage does not apply to the insured's own employees, who are covered under workers' compensation. In COI compliance, the medical payments limit appears on the ACORD 25 certificate in the General Liability section. While it is rarely a primary compliance concern, some contracts specify minimum Med Pay limits. Compliance platforms should capture this field during certificate parsing to ensure complete coverage verification across all required lines.