Insurance is a fact of modern life. You can’t drive a car without it, and no conscientious homeowner would forego it. But how do you know if you’ve got the right coverage? The truth is, insurance definitely isn’t one size fits all. Most people turn to an insurance broker or insurance company to find the right coverage, but the real insurance experts are those who see the effects of coverage or lack thereof when things go wrong: injury lawyers. We understand the true risks of inadequate insurance, and we can help you protect yourself and your family from financial ruin in the case of an accident. Though the probability of such an event is low, the proper way to assess the risk is against the severity of the potential consequences.
Lawyers tend to be among the top earners in Canada. The more you earn and the greater your assets, the greater the need to protect yourself against risk with the right insurance. If you cause an injury accident in an at-fault insurance jurisdiction, and the amount of compensation exceeds the value of your auto insurance, your assets or wages may be in jeopardy. Consider taking $2M in liability coverage as an absolute minimum and be sure to ask for a family protection endorsement, which covers you in the case that you are injured by an uninsured or underinsured motorist. We also recommend a minimum of $2M of liability coverage under your homeowners’ policy.
If you hold considerable assets beyond your principal residence, such as shares in a business or partnership, a vacation home, a collector car, watercraft, college funds, investments, or sizeable RRSPs or TFSAs, you may require even more insurance. Further, if you are a business owner or partner in a law firm, you may require or be required in the terms of your shareholders’ or partnership agreement to carry a minimum amount of coverage. Personal umbrella liability coverage is a great, cost-effective way to top up your coverage and protect yourself against lawsuits related to injuries or damages arising from your properties or vehicles. Umbrella coverage goes with you wherever you are in the world and protection is typically available at various increments, from $1M to $50M depending on the insurer. Those who own property in the United States—where damages awards can be considerably higher than in Canada—need to be particularly concerned with having adequate insurance. American insurers tend to sell insurance policies with lower limits on liability, so if possible, insure yourself under a Canadian policy and have top-up coverage under a Canadian umbrella policy.
Don’t let an at-fault accident rob you and your family of your cherished belongings, your financial well-being, your business, or your retirement. Protect everything you’ve worked so hard to build by ensuring you have adequate liability coverage. The incremental cost is very low, but the peace of mind it buys is priceless.
If your client has been injured in Alberta, call on us. We’ve spent the last 43 years fighting for the injured, and we’ll go the distance for your referral. Visit www.litcorefer.ca for details.
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