Asset Protection...We All Need It...

Some frustrating and scary facts...

1.] 70,000 lawsuits are filed each day.
2.] The average medical malpractice award is $3.9 million.
3.] The average legal costs of settling a frivolous lawsuit is $91,000.
4.] The average sexual harassment award against small businesses is $530,000.

No wonder attorneys do not want the laws changed to control frivolous lawsuits...they are getting rich!

Insurance is good, but it is impossible to be insured against every possible contingency. There will always be many exposures for which no insurance exists or which are not adequately covered by which one's coverage or what one can afford. You must realize that "umbrella" policies are not the holy grail of protection that most people believe them to be. We often think that "umbrella" means everything, while insurance companies refer to specific occurrences with specific limits...and being "right" is not always "right". Your insurance company may spend more than your umbrella policy limit, defending you on a claim. Even if you win, you still are liable for defense costs. To make matters worse, if they are defending you, and incur a large defense bill...and you lose, resulting in an award being given to the plaintiff without having enough coverage in your policy...you are liable for the balance.

People with these common factors are at risk:

1.] High net worth and or high liability.
2.] High exposure and visibility.
3.] Assets that are difficult to replace if lost.
4.] Have employees.
5.] Own their own business.
6.] Have professional liability.
7.] Own liability-generating assets such as rental property.
8.] Have children.

These types of individuals need to take proactive steps to protect themselves. No effective legal and estate protection can be started after a lawsuit has been filed. So, realize your value as a target and do something now! Be realistic about the possibility of exposure and the effect a six-seven figure judgment could have upon your future financial plan. Be prepared and be Empowered!