How Much Liability Should I Have?

[Milkman1265]

how much liability insurance should everyone have?

Do you calculate all your assets and monies then add 25% or whatever for legal fees and expenses?

I know there really isnt a definitive answer for this, but what is a good base line to be adequately covered?

Are judgements if you are at fault, usually awarded as medical bills + expenses up to your asset limits?

What do you guys use as a general limit for liability wise.

There are calculators everywhere for life but not p&c...

 

[Herkster]

how much liability insurance should everyone have?

Do you calculate all your assets and monies then add 25% or whatever for legal fees and expenses?

I know there really isnt a definitive answer for this, but what is a good base line to be adequately covered?

Are judgements if you are at fault, usually awarded as medical bills + expenses up to your asset limits?

What do you guys use as a general limit for liability wise.

There are calculators everywhere for life but not p&c...

It depends on how you want to look at it. First, remember from all of this that I am in rural Iowa, a town under 1k in population, and it is centered on our Ag community. You can buy a house here from $20,000, and it is liveable when you buy it.

We write our homeowners policy's at 300k-500k in liability, depending on what assets they have, value of the house, and really, how much they want to pay for their yearly premiums.

However, get out into our farm policies, and it's a different story. I won't write a new policy without 1m in liability and I will present at least another 1m umbrella on top at the time of the quote. Land values here range from 8k-15k an acre. Own 100 acres and you have a million in assets not including machinery, your vehicles, your house, etc. There are guys that own 500-1000 acres, if not more, and as much as I can try, I wouldn't convince them to purchase a 5m umbrella plus their 1m policy liability limit. This still wouldn't cover a quarter of the farmers assets in this area.

So, short story long, I think location has as much to do with liability limits as net worth does.

 

[Milkman1265]

Damn mobile browser lost my reply.

I think a better question would be, how are judgment awarded?

If I had 2.5 mm in assets, car income building etc... And someone trips and falls on my property.

Do they make a judgment based on how much yo can afford to pay?

Do they use standard judgment awarding based on proir cases?

If someone trips and falls, a lawyer does a simple asset check and sees 2.5mm they will put in a claim for 4mm and try to milk you for all your money.

How do we offer good liability? Based on total asset and more?

----------

Damn mobile browser lost my reply.

I think a better question would be, how are judgment awarded?

If I had 2.5 mm in assets, car income building etc... And someone trips and falls on my property.

Do they make a judgment based on how much yo can afford to pay?

Do they use standard judgment awarding based on proir cases?

If someone trips and falls, a lawyer does a simple asset check and sees 2.5mm they will put in a claim for 4mm and try to milk you for all your money.

How do we offer good liability? Based on total asset and more?

----------

Damn mobile browser lost my reply.

I think a better question would be, how are judgment awarded?

If I had 2.5 mm in assets, car income building etc... And someone trips and falls on my property.

Do they make a judgment based on how much yo can afford to pay?

Do they use standard judgment awarding based on proir cases?

If someone trips and falls, a lawyer does a simple asset check and sees 2.5mm they will put in a claim for 4mm and try to milk you for all your money.

How do we offer good liability? Based on total asset and more?

 

[AZDave]

how much liability insurance should everyone have?

Do you calculate all your assets and monies then add 25% or whatever for legal fees and expenses?

I know there really isnt a definitive answer for this, but what is a good base line to be adequately covered?

Are judgements if you are at fault, usually awarded as medical bills + expenses up to your asset limits?

What do you guys use as a general limit for liability wise.

There are calculators everywhere for life but not p&c...

At the minimum offer liability limits of what they are worth and advise of higher layers for so little....crazy stuff happens....document, document.

 

[bobson]

how much liability insurance should everyone have?

Do you calculate all your assets and monies then add 25% or whatever for legal fees and expenses?

I know there really isnt a definitive answer for this, but what is a good base line to be adequately covered?

Are judgements if you are at fault, usually awarded as medical bills + expenses up to your asset limits?

What do you guys use as a general limit for liability wise.

There are calculators everywhere for life but not p&c...

That's an easy one.

Right after the lawsuit is settled I can tell you how much you needed.

 

[AZDave]

That's an easy one.

Right after the lawsuit is settled I can tell you how much you needed.

Yep, learned from high up claims adjusters: "you tell me the claim, and I'll tell you what and how much coverage you need"!

 

[Sales71]

Damn mobile browser lost my reply.

I think a better question would be, how are judgment awarded?

If I had 2.5 mm in assets, car income building etc... And someone trips and falls on my property.

Do they make a judgment based on how much yo can afford to pay?

Do they use standard judgment awarding based on proir cases?

If someone trips and falls, a lawyer does a simple asset check and sees 2.5mm they will put in a claim for 4mm and try to milk you for all your money.

How do we offer good liability? Based on total asset and more?

----------

Damn mobile browser lost my reply.

I think a better question would be, how are judgment awarded?

If I had 2.5 mm in assets, car income building etc... And someone trips and falls on my property.

Do they make a judgment based on how much yo can afford to pay?

Do they use standard judgment awarding based on proir cases?

If someone trips and falls, a lawyer does a simple asset check and sees 2.5mm they will put in a claim for 4mm and try to milk you for all your money.

How do we offer good liability? Based on total asset and more?

----------

Damn mobile browser lost my reply.

I think a better question would be, how are judgment awarded?

If I had 2.5 mm in assets, car income building etc... And someone trips and falls on my property.

Do they make a judgment based on how much yo can afford to pay?

Do they use standard judgment awarding based on proir cases?

If someone trips and falls, a lawyer does a simple asset check and sees 2.5mm they will put in a claim for 4mm and try to milk you for all your money.

How do we offer good liability? Based on total asset and more?

Ask your attorney clients or the lawyers you work with...there is no right or wrong answer it all depends on the case your writing and the client is willing to pay for the limits.

 

[reedrhoden]

The short answer is you should have as much as you can afford.

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