Insurance Myths, Legends, and Lies (#2)

“There is no need to purchase liability limits higher than my net worth.”

This is a slightly smarter version of last week’s “lie”, which you can see here.  A person’s net worth is the value of all they own minus all they owe; why should it be the magic number…that’s not all the attorney is going to ask the court to award.  More than one individual with a net worth of $250,000 (for example) has lost a $1 million (or more) negligence suit.  A key rule of risk management is, “don’t risk a lot for a little.”  Umbrella and excess policies are very inexpensive, bordering on cheap, compared to the limits that can be purchased – invest a small amount of money in the large amount of protection.  (Credit again to Christopher J. Boggs, Insurance Journal)

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Interested in learning more about Umbrella coverage and rates?  Call 877-446-BECK (2325), email us at info@beckinsurance.com, or submit your request for a quote here.

See you next week!