Accidents happen, and if it happens on your property or because of your negligence, the victim has the right to file a lawsuit to recover for any losses. Anyone with assets to protect from lawsuits should carry insurance coverage for the items that have taken so long to acquire. For most people, the liability limits on the homeowner and auto policies may not be enough to protect those assets when faced with legal action.
Liability coverage pays when you are legally obligated for damages that occurred as the result of something that happened on your property or for damages caused by your personal activities. This coverage would pay the claims as well as a lawyer to defend you in the event of a lawsuit. In addition to protection from claims and lawsuits arising out of non-auto incidents that occur at your premises, these policies often provide protection against incidents that occur off the premises.
Settlements and verdicts can soar into the millions. Are you protected? Most people’s exposures aren’t matching their current insurance limits. When life changes (like teen drivers, addition of a swimming pool, or serving on non-profit boards) create new opportunities for liability, increase your liability limits.
LLC, FLP and Ltd
Through estate planning and asset protection, many families are putting one more step between their potential liabilities and their assets by titling homes, autos, toys, etc in LLCs, FLPs, and LTDs. If not insured correctly, this safeguard could be a detriment to the insurance program and all claims could be denied. At Swingle Collins & Associates, we work with estate planners and understand how to properly insure you against any potential losses due to improper listing of named insureds.