As a physician, you’ve devoted many years to study and hard work. You’ve paid your dues to get where you are, and continue to devote yourself to the practice of medicine with all its responsibilities. No one would question that you’ve earned the place you have in life. With hard work and dedication, financial success usually follows. Unfortunately, there are some who may view your financial situation in an opportunistic way. If you are involved in an accident and you are held responsible for damages or bodily injury, the other party may want to take advantage of your financial situation.
It is an unfortunate truth: physicians are highly vulnerable to being sued. For this reason, most carry malpractice insurance. However, this protection does not extend to injury or liability outside the field of medicine. For personal protection, an umbrella insurance policy is a wise choice.
Your Personal Risk in an Auto Accident
If you are found at fault in an auto accident, your auto insurance will provide some level of protection. If another driver or passenger is hurt, your automobile insurance may pay for damages up to the limit of your policy. But if the injuries are severe, you could be responsible for damages beyond what your auto insurance covers. If the injured party sues you, your personal assets will likely be at risk.
Consider an example. You injure a successful professional in a car accident and are found at fault. The other driver is unable to work for six months. Your automobile coverage has reached its limit of protection by covering property damage and medical bills, and you are presented with a lawsuit for $1 million to cover the lost wages. In the blink of an eye, your home, vehicles, and savings are now at risk. But if you have already put in place an umbrella insurance policy, this coverage could provide the additional financial safety net to help protect your personal property and bank account.
Perhaps you may feel that your auto insurance will be enough. In Texas, the minimum liability limits for auto insurance are $30,000 for each injured person up to a total of $60,000 per accident with $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage. According to the Texas Department of Transportation, the average economic loss per vehicle crash is $72,891. You likely have more coverage than the basic amount. But the potential for loss can be much higher than what your current limits are. Also consider carefully: even though Texas law limits punitive damages in auto accidents, those limits do not apply to medical expenses, lost wages, or pain and suffering.
Therefore, even generous auto insurance may not be enough to truly protect your personal assets. An umbrella policy will help protect you against any catastrophic financial loss in the event of a lawsuit.
Your Personal Risk at Home
You own a home, and you carry homeowners insurance, so you’re covered for loss due to fire, theft, and other certain losses. But if a visitor or worker is injured on your property, they may see a financial opportunity. Whether their injury is legitimate or not, in the event of a lawsuit, your homeowners insurance limits may be exceeded, leaving your children’s college funds, your investments - and more - at risk. Umbrella insurance extends your coverage so your hard-earned assets have additional protection.
Easily Reduce Your Personal Risk
For many physicians, obtaining protection from an umbrella insurance policy makes good financial sense. In most cases, these policies are available in million-dollar increments, up to 5 million dollars. And best of all, for the protection that they provide to you, they are quite affordable: typically a few hundred dollars per year.
Would you like to look into obtaining umbrella insurance to protect your financial future? At TMA Insurance Trust, we have made it quick and easy to find out how to get the coverage you need. Click below to visit MyLifeProtected for a quote, or call an agent directly at 877-755-9576. You’ll get quick answers and access to coverage from the leading insurance companies.
For over 60 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.