What's Your Risk of Being Sued?
Some businesses and individuals have a higher loss exposure to lawsuits. This tendency is often referred to as a suability factor. How suable you are can be determined by examining the following:
- Growth of business size
- Wealth indicators including real estate holdings or stock portfolio
- Family income
- Profile in the community and media
- Leadership activities on boards or associations
- Future income
Businesses or individuals with a high suability factor nearly always need an umbrella policy. By creating a single policy to increase the limits, you get the most coverage for your money by spreading the risk.
It is good to consider how much you have to lose should litigation lead to a court case where you’re found liable for damages. With the rising cost of medical and auto repair expenses, a major accident can often exhaust the policy limits on a typical policy if there are serious injuries involved. In this case, an umbrella policy would kick in and provide additional coverage. And in some cases, it provides broader liability coverage than that found in the underlying policies.
Learn more about Commercial Umbrella offerings from IMT Insurance.
