“What Liability Limit Should We Carry?”… an incredibly common insurance question.

If we had a crystal ball, we would buy a limit that would be sufficient to pay for our actual legal responsibility during the policy term.  

Otherwise, three important questions will need to be answered…

1. What is the greatest catastrophic liability exposure to our organization or family?
Whether it’s a claim for loss resulting from distracted driving, construction defect, a defective product, or a 3am fire in an apartment building (just to name a few), its critical to pinpoint our catastrophic loss potential and estimate its financial implications.

2. What is the  business equity or personal net worth that must be protected?
This is the organization or individual net worth that must be insulated from lawsuits.

3. What “insurance premium budget” makes financial sense for the business, individual, or family?
One insurance agent explained that he asks his clients, “If liability insurance was free, how much would you want?” He then provides premium pricing for liability limits in $1MM increments to locate an insurance premium budget that the client considers “financially healthy” for their organization or family.


VANTREO is here to help. If you’d like to know how the liability insurance you purchase works, or get input on the limit to carry, just call us at 800-967-6543 or email us ...Reply here