Do I need it? With today’s society, it is common place for you to hear about someone being sued. Could that person be you? Possibly. Do you have enough money to cover the damages? Maybe. Can you buy extra coverage just in case? Yes. Is it expensive? No.
Something really big is punitive damages. We all know about the case where the lady sued a restaurant for her coffee being too hot and scalding her when it was spilled in her lap, by her. She was awarded compensatory damages for her medical bills & lost wages, but she was awarded a huge sum of money for punitive damages. So say your teen is texting while driving, causes an accident and severely injures someone.
The court awards $300,000 in compensatory damages and 1 million in punitive damages because your teen was acting carelessly and they want to punish them for their actions. This could happen. If you purchased the wrong Umbrella policy that excludes punitive damages, your Umbrella policy won’t be paying that claim. Guess who will? You will.
Do you have an Umbrella policy? Do you know if it is a true Umbrella policy and if it excludes punitive damages?
Part 1