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Lawsuit liability may impact wealthy families heavily, says Amity Insurance

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QUINCY, MA ISSUED APRIL 24, 2012…Although many assume that wealthy families have little to worry about, those in the high-income bracket are more apt to be targets of significant liability lawsuits, according to Amity Insurance Agency, Inc., the region's leading full service agency.

Sadly, the unsteady economy has contributed to a rise in liability lawsuits; yet many wealthy families are not adequately protected against such litigation. They may also underestimate the cost of potential damages and overlook the affordability of insurance protection.

In fact, a recent study by ACE Private Risk Services of those with more than $5 million in assets found that half of those interviewed thought the worst lawsuit they could possibly face would be less than $5 million; however the grim reality is that lawsuit awards for serious injuries are often much higher. This survey showed that more than 50% of families interviewed had employees, increasing the risk for lawsuit by disgruntled former and current staff members.

Since some wealthy families underestimate all types of liabilities, they are more likely to carry insufficient insurance policies; this is true with homeowners' coverage, auto insurance and others types of insurance. More than 40% of those surveyed by ACE reported carrying under $5 million in umbrella liability coverage, with more than 20% indicating they did not carry umbrella insurance at all.

Those unfamiliar with umbrella insurance should be aware that it is a critical component of personal coverage. In the event an accident consumes the maximum amount allowed by an individual policy, the umbrella policy provides additional coverage. Policies that cover between $1 million and $100 million are available. Premiums for such policies are higher than average but selecting a larger deductible lowers premium amounts.

Selecting a plan with a higher deductible and paying for small losses is a responsible choice. It's wise to discuss options with a professional insurance agent.

About Amity Insurance

Amity Insurance Agency, Inc. is a full-service agency dedicated to meeting your business, professional and personal insurance needs.

Amity Insurance is licensed in most states. The agency maintains headquarters at 500 Victory Road, North Quincy 02171. For information on products or services, please visit amityinsurance.com or call (800) 940-4010 to schedule a free analysis.