3 Things to Know About Protecting Yourself from a Lawsuit
What would you do if you found yourself suddenly sued for negligence? Would your home, retirement savings, or wages be at risk? Losing important assets is a reality faced by thousands of Americans embroiled in legal battles each year. In many cases, the incident that sparked the situation began with a completely unavoidable incident.
A normally cautious driver could make a mistake on the road and suddenly find themselves liable for another person’s death. The owner of a friendly dog could have a visitor to their own attacked and seriously injured by their pet. As you can see, there are a multitude of different scenarios where an accident can happen.
However, there are a few things you can do in advance to help protect your financial future. Here are three tips to consider.
#1: Clearly Understand Your Risk
The first step in protecting happens by clearly understanding your risk. If you regularly have visitors to your home, own a pool, or entertain often, there is a greater chance that a guest could be seriously injured while on the premises. Parents of teen drivers and those who commute a great distance for work have a much larger probability of filing a serious auto insurance claim. By taking a look at your lifestyle, you can easily determine how much protection you need against an incident.
#2: Make Sure You Have Proper Liability Insurance Coverage
Another step to protect yourself against a lawsuit is by making sure you have proper liability insurance coverage on your auto policies. In Michigan, the minimum liability limit for vehicle coverage is only $20,000 per person and $40,000 per incident for multiple people involved in an accident. With the skyrocketing cost of medical treatment, these funds can be completely used up even in a relatively minor crash. The lesson? Always purchase a higher amount that the state requires.
#3: Consider Purchasing an Umbrella Policy
Another way to protect yourself from a lawsuit is by purchasing an umbrella policy. This type of policy acts as an extension of the liability coverage on your home and auto policies. In many cases, your insurance carrier requires that you have a certain level of liability coverage on your home and auto policies before they will allow you to purchase an umbrella policy. For most providers, this figure hovers somewhere around the $250,000 to $300,000 mark. However, it is important to speak with your agent directly to determine what changes you need to make to those policies to be considered for additional liability coverage.
Don’t put yourself or your family’s financial well-being at risk! Contact our knowledgeable team today for more information on how insurance can protect you from a serious lawsuit.
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