Thursday, July 5, 2007
Top 10 Ways to Protect Yourself From Frivolous Lawsuits
1. Buy sufficient liability insurance including umbrella/excess insurance. Umbrella insurance can cost as little as $150.00 for additional $1,000,000.00 coverage for even more types of claims like defamation, false arrest and invasion of privacy. Trying to save a few dollars now can expose your home and assets. Don't be under-insured!
2. Increase your property deductible and use the premium savings to buy more catastrophic liability coverage for greater asset protection. It's sometimes smart to "self" insure the deductible and gain additional liability protection.
3. Make a list of everything you would lose in a lawsuit gone bad in order to come up with an asset protection plan. Pull out your insurance policies now and review them carefully with your attorney, insurance broker or adviser to see if you really have enough insurance.
4. If you own a business, consider forming a subchapter "C" or "S" corporation or a limited liability company (LLC) to protect your personal assets.
5. Trusts and retirement plans may protect your assets from a judgment. Federal law can protect qualified retirement plans (but depending on state law not an IRA) from creditors.
6. Try not to sign personal guarantees for your business obligations. Be wary of general partnerships which can expose your personal assets.
7. In all of your dealings, keep your word and if you have nothing good to say, say nothing. Many frivolous lawsuits start as a result of what appears to be innocent disagreement among friends. Choose business partners, employees and social acquaintances wisely. Your trusted colleague today may be suing you tomorrow for a slip and fall, what you allegedly said or wrote about them or for an oral agreement they now refuse to keep. And remember that intentional conduct and punitive damages are usually not covered by insurance — so if you're sued you're on your own.
8. Be like the big companies and start your own risk management program to reduce risks around your home and business. Fix the broken steps or sidewalk you've never gotten to. Tack the carpet to reduce falls. We know about safe proofing the house for kids. Safe-proof your home and business for the safety of friends, family and customers and for your financial safety!
9. More is better than less. Uri Gutfreund of Teaneck, New Jersey based Singer Nelson Charlmers,an insurance brokerage suggests that when serving on volunteer boards and associations — charitable corporations, condos or cooperatives, for example-make sure there is directors insurance in place so your assets are not at risk for the organization's lawsuits. Also if you're a business owner, purchase insurance for employment claims. Finally, it may seem expensive at the time you rent a car, but purchase the additional or supplemental liability insurance offered.You may be surprised at how little insurance comes with the rental.
10. Don't be a victim! Carry a camera in your car to document an accident and who was actually in the vehicle involved. Staged accidents are very common. If you have an accident call the police to take a report and report the accident to your insurance company immediately. Never try to broker a cash settlement at the accident scene. You're only buying trouble.
Source: Fox News
2. Increase your property deductible and use the premium savings to buy more catastrophic liability coverage for greater asset protection. It's sometimes smart to "self" insure the deductible and gain additional liability protection.
3. Make a list of everything you would lose in a lawsuit gone bad in order to come up with an asset protection plan. Pull out your insurance policies now and review them carefully with your attorney, insurance broker or adviser to see if you really have enough insurance.
4. If you own a business, consider forming a subchapter "C" or "S" corporation or a limited liability company (LLC) to protect your personal assets.
5. Trusts and retirement plans may protect your assets from a judgment. Federal law can protect qualified retirement plans (but depending on state law not an IRA) from creditors.
6. Try not to sign personal guarantees for your business obligations. Be wary of general partnerships which can expose your personal assets.
7. In all of your dealings, keep your word and if you have nothing good to say, say nothing. Many frivolous lawsuits start as a result of what appears to be innocent disagreement among friends. Choose business partners, employees and social acquaintances wisely. Your trusted colleague today may be suing you tomorrow for a slip and fall, what you allegedly said or wrote about them or for an oral agreement they now refuse to keep. And remember that intentional conduct and punitive damages are usually not covered by insurance — so if you're sued you're on your own.
8. Be like the big companies and start your own risk management program to reduce risks around your home and business. Fix the broken steps or sidewalk you've never gotten to. Tack the carpet to reduce falls. We know about safe proofing the house for kids. Safe-proof your home and business for the safety of friends, family and customers and for your financial safety!
9. More is better than less. Uri Gutfreund of Teaneck, New Jersey based Singer Nelson Charlmers,an insurance brokerage suggests that when serving on volunteer boards and associations — charitable corporations, condos or cooperatives, for example-make sure there is directors insurance in place so your assets are not at risk for the organization's lawsuits. Also if you're a business owner, purchase insurance for employment claims. Finally, it may seem expensive at the time you rent a car, but purchase the additional or supplemental liability insurance offered.You may be surprised at how little insurance comes with the rental.
10. Don't be a victim! Carry a camera in your car to document an accident and who was actually in the vehicle involved. Staged accidents are very common. If you have an accident call the police to take a report and report the accident to your insurance company immediately. Never try to broker a cash settlement at the accident scene. You're only buying trouble.
Source: Fox News
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