The United States has seen 512,000
federal civil lawsuits, according to Statistics Brain. While only two
percent of these cases went to trial, the sheer amount of lawsuits filed
shows a trend toward a litigious society. Homeowners insurance and
automobile insurance cover the majority of cases that would cause an
individual to get sued. However, these insurance policies do not have an
unlimited payout if the court rules that you're held liable for
damages. After the insurance company cuts you off with a lifetime limit,
your personal assets are at risk of being taken to fulfill a lawsuit
judgement. A personal liability insurance policy covers the gaps that
other insurance plans leave open. It's commonly called an umbrella
policy, as it is an overarching coverage that fills in the protection
gaps.
Personal Liability Insurance Pros
An umbrella insurance policy is available at $1,000,000 and higher
in coverage. This additional coverage extends over any other policies
that you hold, increasing the total liability by the amount of the
umbrella policy. Your future earnings and assets are protected from
civil lawsuits with this policy, as you won't have to worry about not
having enough insurance coverage for any claims. You'd never want to run
into a situation where you didn't have enough coverage, you got sued,
and you and your family ended up homeless and without a penny to your
name. This type of insurance also covers certain types of lawsuits that
other insurances don't protect you against, such as those involving
businesses that you run, false arrest, and slander lawsuits.
Should you Get Personal Liability Insurance?
Personal liability insurance is useful to have, but if you're
running on a limited budget, you can determine whether you have enough
risk factors to require this coverage. You also have to factor in the
top premium on your existing insurance policies. Many umbrella insurance
companies want you to maximize the amount of coverage you get from your
policies before you add on additional protection.
You might not think that you are particularly at risk to be sued.
Maybe you don't own a car or a home, and you don't run a business.
However, that doesn't prevent you from causing an accident, such as one
that makes a doctor unable to work for several years. A severe car
accident could cause him to lose full function of his hands, make him
unable to stand for long periods of time, or cause other injuries that
make it impossible to do his job without extensive physical therapy. If
he sues for lost wages, you're going to be hit with significant
financial losses. Unexpected situations can happen at any moment, and in
a sue-happy legal environment, it's safer to get as much protection as
possible.
To learn more about the advantages of getting Oklahoma City personal liability insurance, give us a call at 405-751-8356.
