Forbes Quotes Alice Jump on the Cost of Lawsuits and the Importance of Liability Insurance
Many people don’t know how much can be lost by going to court. For even small lawsuits with relatively small damages at play, the addition of attorneys’ fees and costs of legal proceedings can multiply the overall cost tenfold, which can in some cases lead to loss of assets, including cars, homes and life savings.
On July 7, Forbes published the article “What Exactly Can Be Taken from You in a Lawsuit?”, for which they reached out to RPJ Partner and expert litigator Alice Jump to provide insight on the matter. “America is a litigious society,” says Jump. “By some estimates, there are over 40 million lawsuits filed every year. Litigation is not fun—except maybe for the lawyers.”
As the article notes, accidents are the most common type of liability lawsuit leading to the loss of assets, and courts can require an appearance for an asset hearing in which they can not only ask questions under oath about said assets, but can also demand documentation regarding wealth and ability to pay. This is why, attorneys will advise, it is important to have liability insurance. Liability insurance covers accidental injuries or property damage, which includes but is not limited to bodily injury, personal injury such as libel, slander and malicious prosecution, and defense costs for civil lawsuits.
However, liability insurance on its own is often restrictive, considering that damages and injuries can occasionally cost more than an auto or homeowners insurance policy’s limits, which highlights the importance of having umbrella insurance as well. Umbrella insurance is a standalone policy that attaches extra coverage to a pre-existing liability insurance and can potentially save assets when something goes catastrophically wrong.
The article goes on to discuss liability and umbrella insurance policies in further detail, with examples of liability lawsuits and an explanation of just how much insurance is needed to have all your assets protected.
Read the full article on Forbes here.