Lawsuit is a scary word to most of us, and so we purchase insurance to protect our families and ourselves. However, we often wrongfully assume that our auto or home insurance will provide all the liability protection we need. The reality is that jury awards in personal liability lawsuits are unpredictable and often very expensive.
Here are some examples:
- Mr. Jones was driving his vehicle too fast and caused a multi-car accident. A number of people were injured and one was killed. His auto insurance provided a maximum of $300,000 of coverage. He was sued by four different families for a total of $2.3 million dollars.
- Mrs. Smith was playing tennis. As she was standing next to the tennis court, she was showing how fast another player could swing their racket. In her animated display she struck another player in the eye causing permanent and unrepairable damage. The person she struck was a surgeon and could not perform in the operating room any more. Mrs. Smith was sued for $3,000,000 (in anticipated loss income). Mrs. Smith's homeowners policy provided $300,000 of protection.
- Mr. Adams was hunting. He accidentally shot and killed another hunter. The other hunter was married with 3 children. His wife did not work at the time of the accident, as the children were ages 2, 4, and 6. Mr. Adams was sued for 1.5 million dollars. His homeowners insurance limits were $300,000.
- Mr. and Mrs. Williams were out on the lake in their boat. They did not see that a water-skier had fallen off her skis and was in the water waiting to be picked up. Their boat hit the water-skier at 25 miles per hour and placed the water-skier in a permanent coma. The water-skier was a second year medical student and her family sued the Williams' for 3 million dollars for pain and suffering and anticipated lost income had the woman in the water become a doctor. Their boat insurance policy provided $100,000 of protection.
