Wealthier individuals can benefit from obtaining excess personal liability insurance. Those with significant wealth might want to consider purchasing this type of insurance because the extent of their personal and financial activities makes them attractive objects of potential lawsuits. For that reason, these individuals could benefit from additional, inexpensive liability coverage. In fact, excess personal liability insurance is probably the most inexpensive insurance that a person can purchase. A client could purchase a $1 million dollar policy for only $5,000 to $10,000 a year. A $10 million dollar policy could only cost $2,000 a year. Regardless of the expense, the primary reason that a wealthy client should consider this option is because if a client does not have the funds needed to cover an adverse judgment, then a court can garnish the wages of the client, which could hurt even the wealthiest of people.
See Nancy R. Mandell, Covering Up: Wealthy Clients Are More Likely To Be Sued, But Excess Personal Liability Insurance Doesn’t Have to Cost a Fortune, Financial Planning, Apr. 1, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
