How much liability insurance is enough?? – Picture yourself in this situation: somebody has threatened to sue you over a frivolous incident for which you believe you are not responsible. Just to be safe, your insurer assigns a high-powered Toronto law firm to defend you.
Here’s the shocking part: after pointing out that the plaintiff has chosen to sue you for more than the $1M in coverage that you carry, the letter from your appointed lawyer goes on to state:
“You may therefore have personal exposure above and beyond the limits of your insurance policy. You may wish to retain, at your own expense, a lawyer to advise you with respect to the excess claim.”
This exact situation occurred recently to a client of ours. In plain English, this is a warning – and it causes worry and stress.
The answer? Buy higher limits of liability coverage. Every day, we review files where the liability coverage limit has not been increased for more than 15 years.
Claims settlements are increasing rapidly, far beyond what could have been reasonably predicted even five years ago. Many claims that occur this year will not be settled for another five.
Our client recommendation: buy as much liability coverage limit as you can afford.
Your best protection: Good advice, plus high limits.