Whether on the road or at home, you do what you can to keep yourself and those around you safe. But accidents happen — and sometimes they can lead to pricey lawsuits. Have you ever considered what you’d do if you were sued for something like accidentally injuring a guest on your property or being at-fault for a major car accident? How would you cover the expenses? The primary liability coverage on your home, auto or recreational vehicle insurance may not cover all the costs. If you owe more than what your primary insurance covers, you’ll be left paying out of pocket.
If you’re at fault for an accident or injury and faced with a lawsuit, you may be required to pay above and beyond the primary liability limits on your homeowners, auto or recreational vehicle policy, especially if there are serious injuries. What would you do if this were the case? You may have to sell some of your assets, drain your bank account or hand over future earnings. But this doesn’t have to happen. Personal liability umbrella insurance helps protect all the things you work so hard for. If you have a liability lawsuit against you, umbrella insurance helps cover beyond what your primary liability coverage will pay for — keeping your assets, savings account and future earnings safe and sound.
Liability coverage is probably the most understated coverage when it comes to the insurance purchase. Since personal liability coverage comes with most primary residential insurance policies as part of the “package” people, tend to focus more on the value of their building, condo, or contents, and take the liability portion for granted.
Errors and Omissions
Even if you try your hardest to avoid an errors and omissions lawsuit, a dissatisfied client or business partner may still decide to sue you. Errors and omissions insurance covers your legal costs in this situation, including:
- Lawyer’s fees
- Administrative expenses
- Court fees (filing fees, court reporter fees)
- Expert witnesses
- Settlement costs (settlement payments, mediation expenses)
- Court judgments
If your errors and omissions policy include a “right and duty to defend” clause, you won’t have to worry about spending time arranging your own legal defense. This useful provision shifts the burden of managing the case from you to your insurance provider.
Needing to know more about protecting yourself from a potential lawsuit? Contact your local agent for more information.