$ 15,000 . Luckily for the at-fault party , my clients were not interested in going after a “ judgment proof ” individual who did not have or likely to have any type of assets . Despite hearing stories like this many folks still try to pinch pennies and buy minimal policies and hope for the best . They figure that no one is going to come after them beyond the policy limit . However , if you are at fault , most plaintiff ’ s lawyers like myself have an ethical duty to track down assets you have now and the ones you may accumulate in the future .
So how do you know what ’ s sufficient ? Obviously , determining how much coverage is right for you is a personal decision . Much of the decision depends on the value of the current assets you have to protect . However , there are also other factors to take into consideration . What will the value of your future assets be ? Are you involved in frequent driving activities that put you at greater risk ? Do you have teenagers that are under your policy ? Do you have nagging kids that distract you while you drive ? Whatever the factors may be , the consensus among insurance brokers is that coverage on personal liability insurance should roughly equal a policyholder ’ s net worth .
million-dollar policy limit is going to cover the other side ’ s wrongful death claim against me . Will the other side go after my personal assets ?”
Holding assets under a corporation , LLC , or family trust usually will be a major factor in answering these questions but since that is another layer of legal issues , we will save that topic for another time . Nevertheless , the easiest way to avoid the above scenarios is to have sufficient insurance coverage !
A few years ago I represented a family whose mother was killed in a head on collision driving home from work . Unfortunately , the policy limit we had available to us was the California minimum of
13 | TIBO Magazine - Fall 2016
Most of the time if you have substantial assets it is also recommended to supplement an existing milliondollar policy with an umbrella liability policy . We can try to be careful on the road and teach our employees to do the same , but no one can completely eliminate the risk of major accidents . No matter how many precautions you take , a major accident can change the dynamics of your business forever . Even if you have a sizable policy limit be proactive in strategically protecting your assets , just in case .
Jesse S . Atwal Attorney at Law jesse @ atwalco . com
www . TIBOmagazine . com