In this day and age, as we all know too well, lawsuits are running rampant. You have to have warnings on everything no matter how common sense it seems to be. Remember when McDonalds got sued for a woman spilling a hot coffee in her lap? She won because they didn’t label the cup that it was hot.
While some lawsuits are a bit extreme, it is a blessing that this is able to occur when needed.
The fact is, any one of us is open to some sort of civil suit even if it is not deserved. If you own a business, that liability is increased tenfold. In order to truly protect yourself against losing assets in a legal battle, you will want to consider investing in umbrella insurance.
Umbrella insurance protects people when they’re sued after an event that transpired at their home, in their car, or because of something they did. While some insurance policies will cover a portion of personal liability, there are limits in place as to the amount they can pay. Once these limits are met your umbrella insurance would kick in as a secondary policy.
An umbrella policy will pay for your legal expenses and protect you if you lose the case. If you win, an umbrella policy would cover your legal fees.
Now, iff you’re sued and lose, the judge could award the plaintiff an amount that exceeds what you currently have. Without an umbrella policy in place, the plaintiff can go after your future earnings until they receive what they are owed.
When is it worth it?
If you have a career with a high income such as a doctor, umbrella insurance is highly recommended. One of our clients recently had a call with us about umbrella insurance. I asked if he had ever had someone run out in front of him while he was driving. His response was that it had happened to him just that past week.
He is a doctor so I pointed out to him that had he hit the girl, being a doctor his lawsuit would have been huge and without an umbrella policy that would have financially ruined him and his family. He signed up on the spot for the coverage.
Where to buy it
Call John Scott Insurance today and talk to one of our team about your situation. You can’t go wrong with umbrella insurance. It is one of the best investments you could make to protect your assets.