As you likely know, it is an unfortunate truth: due to their high income, 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. To maintain adequate personal protection, an umbrella insurance policy is a wise choice. Consider a few reasons why.
You Have Personal Risk in Your Vehicle
Auto accidents are common, and if you happen to be at fault, your auto insurance will provide a level of protection, paying for damages up to the limit of your policy. But if the other party is injured severely, you could be responsible for damages beyond what your auto insurance covers. If you are named in a lawsuit, your personal assets will likely be at risk.
Consider this scenario: You are involved in an auto accident and one of the injured parties is a highly-paid professional. The authorities determine that you are at fault, so you are held liable for damages. If your auto insurance coverage has a total limit of, say, $250,000, your limits will likely be reached by covering property damage and medical bills. In short order, you are presented with a lawsuit for $1 million to cover the lost wages of the highly paid professional. Where would you come up with the funds to cover the remaining $750,000 or more? In the blink of an eye, your home, vehicles, and savings are now at risk.
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.
Some physicians may feel that their current auto insurance coverage will be enough. According to the Texas Department of Transportation, the average economic loss per vehicle crash is $72,891. At the same time, 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 means the minimum amount would barely cover the average economic loss for a vehicle crash in Texas.
You likely have more coverage than the minimum amount required by law. But the potential for loss can be much higher than what your current insurance limits are. Also consider carefully: even though Texas law limits punitive damages in an auto accident, those limits do not apply to medical expenses, lost wages, or pain and suffering.
Therefore, even a generous auto insurance policy 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.
You Have Personal Financial Risk at Home
If you own a home, no doubt you carry homeowners insurance, so you’re covered for losses from fire, theft, and other certain circumstances. But if a person is injured while visiting or working on your property, they may see a financial opportunity. Whether or not their injury is legitimate - if you are sued, your homeowners insurance limits may be exceeded. This would leave your children’s college funds, your investments - and more - at risk. Umbrella insurance would extend your coverage so your hard-earned assets have additional protection.
How to Reduce Your Personal Risk - Easily
For many physicians, obtaining 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, for the protection that they provide to you, they are quite affordable: premiums are typically only 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.