Accidents happen every day and when they do they happen very quickly often costing a lot of money for a long time. This is why it is imperative to make sure you have an adequate level of insurance in place on your policies; it is very possible the minimum will not be enough.
We recognize the risk to our clients of not being adequately insured. At Absolute Insurance Brokers we recommend that our clients carry $2 million liability on their personal policies in order protect their interests.
What is Liability Coverage and How Does it Protect Me?
Liability is the portion of your personal policy that covers civil liability to a third party arising from bodily injury, property damage, or other wrongs as a result of any action or inaction of the insured party (you). It only covers civil liability and not criminal liability.
This coverage protects you in the event of a loss or a claim. The insurance company would provide a legal defense, cover any costs, and pay the post-judgment settlement.
Why Having Adequate Coverage is Important
If a lawsuit against you is for more than the limits of your policy you may need to hire a lawyer to protect yourself against any amount above the limit. For example, if you are sued and the plaintiff is awarded a judgment of $1.3 million but you only have $1 million in liability coverage you will be personally responsible for the $300,000.
How do I Ensure I am Protected?
Talk to your broker to review your policy and make sure you have enough coverage; a personal liability umbrella policy may also be an option depending on your situation. Give Absolute Insurance Brokers a call today at 877-941-2266 for a quote on a new policy or to review your existing coverages.