• Paul Fulmer

Lawsuit Protection -

Most people don’t realize the main reason they buy insurance is for the lawsuit protection. If you are ever sued for a covered loss, the insurance company owes to provide you with a defense (attorney) to handle the claim. The most important thing to know is… the cost of the defense is limitless - (no limit / it’s unlimited / no cap) on how much the insurance company will spend to defend you. Of course, it may be cheaper to settle the claim than to pay an attorney bill, but this is up to the company, after all, it’s their money. Sometimes you may want to defend the case based on morals and/or ethics, but the insurance company 1) wants to settle the claim in the most economic way, and 2) they’ve been doing this longer than you, and have seen the results of other similar cases and they have a good idea of how things can go and what is the value of the case.

How much “lawsuit protection” do you have? When you look at the policy declarations page, one of the first numbers you see is the limit of coverage. For example, on an auto policy, it may say 100/300/100. What does that mean? Well, it means it’s a split limit auto policy that provides the insured with liability coverage of $100,000 in bodily injury coverage per person, with a limit of $300,000 per accident. You also have $100,000 in property damage coverage. So, for the above example, a covered loss provides lawsuit protection of unlimited defense expense, plus liability coverage of $100,000 per person, $300,000 per accident, and $100,000 for damage to property. Anything over this, comes out of your pocket. Talk to us, we can help with your questions. We want you to know what you are paying for, and why you are paying it! Call us at (513) 205-5731.

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