Will you stand to lose some of your hard-earned money, income or assets? Or will it be protected? Do you know for sure?
One evening while driving home, you glance down to adjust the radio. When you look back up, you are inches away from broadsiding a bus. Several passengers are seriously injured, resulting in a major law suit.
Again, will your assets be protected? Are you sure?
One afternoon your family dog bites a neighborhood child. Though there was no major physical injury, her parents claim that it has caused her substantial psychological problems.
Do you know for sure that you will be protected?
At a dinner party, a guest trips over a pot on your porch and hurts his neck. Little did you know that his sole income is from a previous lawsuit.
The possible risk of facing legal liability is a fact of life these days. Sadly, few families are properly protected which leaves them exposed to the risk of financial disaster. In fact, the risk or legal liability is perhaps the largest financial risk most families will face.
Liability insurance - also known as “third-party insurance” - protects your assets in the event that you accidentally injure another person or their property. Think about this: What would it cost you to hire an attorney if any of these scenarios did occur, not to mention the court costs and the amount of the judgment? Liability insurance is like having an attorney on retainer. It will pay for legal defense in the event of a lawsuit and pay claims for which the insured is found legally liable up to the amount of the policy limits.
The mistake that most individuals and families make is that personal liability insurance is only for the extremely wealthy. This could not be further from the truth. You could potentially be sued for all that you possess and a large amount of your future income. Over the 30 years plus, while reviewing liability insurance for individuals and families, I have found that 9 out of 10 have inadequate limits. Why? It’s not the cost - the cost is usually very small. It could be because you and your insurance agent work on a “don’t ask; don’t tell” basis. He/she doesn’t know what your assets are and how much they’re worth, you don’t tell him/her, and he/she doesn’t ask.
No matter how careful you may be: accidents can happen. And in today’s litigious world, it is better to be safe than sorry.
So, what can you do? Have your Life Planner review your liability coverage in regard to your unique situation.