Home Accountants & Lawyers Effective Ways You Can Protect Yourself from a Lawsuit

Effective Ways You Can Protect Yourself from a Lawsuit

Effective Ways You Can Protect Yourself from a Lawsuit 2020 - Negosentro

Negosentro| Effective Ways You Can Protect Yourself from a Lawsuit |Liability and negligence lawsuits are prevalent throughout the U.S. You have likely read the headlines about hot coffee or an accidental fall. Unfortunately, liability lawsuits exist everywhere, and they can be devastating to an individual or business.

While this is true, there are a few steps you can take to protect yourself. After all, you don’t want to find yourself in a small room with lawyers and court reporters Sacramento negotiating how much you will pay someone who suffered an injury or negligence that is your fault.  

Consider What the Worst Case Scenario Is

When you are first starting out, you need to consider what the absolute worst thing that can happen is. If you were sued and you lost everything, what does this mean you would lose? Would you lose your home? Your savings or vehicle? For most people, that will be it. What is the value of all these items?

Once you know the approximate value, you need to think about how much protection you need. If you have just $200K in assets, should you purchase a $10 million insurance policy? Sometimes yes, sometimes no. It depends on what makes you comfortable. Regardless of what you decide to purchase, knowing the value of your assets is going to help point you in the right direction.

Purchase Insurance

The best way to protect yourself is with the right insurance. If someone tries to tell you anything different, you need to get different advice. Insurance is what will protect any claims against your savings, car, or house. It could even help you cover legal defense if the need ever occurs. Purchase a quality liability policy to ensure that your greatest risk is protected.

Be sure the coverage limits that you purchase, especially for your auto insurance, are enough to cover the total assets you have and more. Be sure that you also update your homeowner’s insurance policy, because it may not cover everything, or it could not be enough for new ventures. Be sure that you work with a quality insurance broker who fully understands your assets and the protection that you need.

Use Contracts for an Additional Layer of Protection

While you may not realize it now, you can actually contract your liability out. You can make someone else responsible for handling some issues related to the property you own. For example, do you have a tenant or renter? If so, make them responsible for snow removal. If they fail to do their contracted job and someone is injured, it is on their shoulders, not yours. Be sure you have the contracts looked over by the professionals to ensure that they will provide the desired benefits.

Avoid Discussing What You Are Doing

Try not to discuss the new assets you have acquired. Doing so is going to result in jealousy with some people. They may also believe that you have a lot of money, which could put a target on you. Remember, most people talk much more than you may realize. Be sure that you keep these efforts to yourself.

Always Be Kind

Just being nice is something that can go a long way. Don’t be the jerk that everyone wants to sue. Be sure you always treat your tenants, contractors, and anyone else with kindness. Be fair and apologize if something happens, and it is your fault. Do everything you can to make the situation right. Sometimes, just being courteous will help you stay out of court and protect your assets.

Are You Protecting Yourself?

Are you unsure if you are fully protected? If so, now is the time to consult with the professionals. They can review your assets and the protection you have in place to ensure it is adequate and that it will cover the situation if you are sued. If not, they can also make recommendations regarding what you should do to protect yourself and your assets better. 

 

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