Liability - How much do I need?

 A client recently asked me a question many clients do. How much liability insurance do I need? The answer to that question isn't as easy as it sounds. I look at this as how big is your exposure and how big of a risk do you have of a claim. Lets look at a few different kinds of policies.

Personal Auto Policy 
The state minimum premiums vary by state. The coverage is very basic. In New Mexico a minimum limits policy covers $25,000 in Bodily Injury per Person, $50,000 in Bodily Injury per Accident and $10,000 in property damage. In the world of modern medicine the Bodily Injury limits really doesn't cover much.

 So, lets say you have a teenager on your policy and they hit a minivan. Thankfully no kids were in the car but there were four adults with back problems. The $25,000/$50,000 would be stretched to cover them and if that van was totaled the $10,000 couldn't cover a new minivan at today's pricing.

 So, on your Personal Auto Policy, I would definitely recommend higher limits than the minimum. What is good for you? This can vary by the risk of loss and your personal situation should be regarded in this. If you have a thriving business and you do well we have people with very high limits and umbrellas for $1,000,000 of coverage. The umbrellas go over home and auto policies. Typically most people that feel they want to protect themselves have a $100,000, $250,000, or $500,000 of auto liability. Most auto liability carriers have a maximum limit, and this varies by carrier. Remember, you do pay more for more coverage, but you need to consider all options as well as your exposure should something happen.

Commercial Auto Policy
The factors in a Commercial Auto Policy are just as prevalent as a Personal Auto Policy, while a personal auto policy can typically exclude commercial use the coverages are the same. Typically the auto carriers will offer up to a maximum of $1,000,000 of auto liability and you can still buy umbrella's. The Commercial Umbrellas can be purchased to very high limits.

Commercial Liability Policy
 A Commercial Liability Policy should be given the same consideration as a auto policy when your looking at exposure versus risk. All businesses should start out with $1,000,000 of liability per accident and an aggregate (limit per year of coverage) of $2,000,000. From here you should look at your exposure. Do you have multiple locations? Do you have the clientele to warrant higher coverage? Here you can buy and umbrella or excess policy and have it go over your Commercial Liability, Commercial Auto and even your Workers Compensation accounts. 

Contact me at 800-765-8272 and ask for John Dziak today for a complete insurance evaluation or submit your information online at our website for a quote.