How Can Liability Insurance Protect You from Lawsuits?
Personal injury lawsuits have increased dramatically in recent years. As part of a sound risk management plan, you should consider protecting yourself with liability insurance.
Liability insurance can protect you from lawsuits that may arise from someone falling in your front yard, or your dog biting the mailman.
While your homeowners and automobile policies include liability insurance, the casualty insurance in those policies protects you only up to a certain limit. Therefore, you may need to insure your assets at higher amounts.
You can protect your assets against lawsuits with an umbrella policy. It provides liability coverage that starts where your other coverage leaves off. Because this coverage takes effect only above certain limits of your casualty insurance, it is important that your auto and homeowners insurance policies protect you below those limits. In fact, most umbrella policies will require a specific minimum in liability coverage on your auto and home insurance policies.
Also, most umbrella policies require that your auto, home and liability policies be held by the same insurance company. This means that it is very important that you shop around for the best insurance package rates. You may actually save money by consolidating policies under one company.