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May 23, 2018

Its too Late after Tragedy Strikes


Contact: Amanda Edmunds
I & E Insurance Agency

[email protected]


(May 23 2018)


For years we spoke to our clients about the dangers of not having the proper coverage especially when it comes to protecting  your home business and family from litigation.  The possibility of a large lawsuit can be minimized by the procurement of a excess Liability policy called an umbrella Insurance policy. The Umbrella Policy is a useful weapon against unforeseen events where the liability coverage of your home, auto or business can be tested above the standard amount. Most Homeowner polices will issue a standard half million liability for a homeowner in the event of a lawsuit against the policy holder. Most Auto Insurance companies will requite that you have a standard $250,000 minimum amount of liability on your auto before an extra 1 million of Umbrella insurance can be acquired. Why do you need an extra million dollars or more liability coverage in the first place? Well in short we live in a very litigious world where everyone with an attorney is looking for a payout for their bead behavior accidents or irresponsibility. Its always someone else’s fault seems to be the popular adage and with the wealth of the country increasing substantially over the last 60 years almost any one can sued. So taking out an extra million dollars or more dependent on your personal net worth seems to be a smart move to protect your wealth against unforeseen events and accidents.  And the cost of a standard umbrella is negligible usually in a household with good driving records, one home, two cars the cost can be under $225. but the cost will depend on a variety of variables, so call your agent today and get a personalize quote.


Now this brings us to a case in point how proper planning can protect you against adversity and unforeseen disasters. But that’s life so plan for the unexpected , don’t leave it to chance. Now to a real life example of why havinga  cheap milliondollar umbrella insurance policy and good advice can make a difference.  Recently this author was at a High School Parent meeting where one of the he fathers whom Iv’e had the pleasure of knowing for the last four years came up and asked me in a panic some questions. This gentleman was a successful doctor with a growing business,  several locations where he owned the buildings and had a growing family of  6 children 2 in college and 4 in private High and grade school . he owned a million dollar home where he had a few hundred thousand in equity but for the  most part he was leveraged quite a bit, but with a growing business and substantial debt the margins were close. So the news of his predicament was actually shocking. For years I had tried to see him and had offered guidance on several subjects that I felt he was lacking just from his basic conversations with me and sit down and do some Insurance planning by looking at his business and home insurance, he mention several times that he wanted to do it but always seemed to be too busy to consider looking at anything. So when he called me over at a meeting in April to talk to me I thought he finally found the time. Unfortunately the new he gave me wasn’t about an appointment but a disaster that recently happened.


His wife was at practice picking up one of his younger sons and was driving a large SUV out of a parking lot, when a woman walked in front of the car as she was edging out of the lot and the woman was struck just enough to knock the woman down to ground where she struck her head hard splitting her head open and breaking her collarbone. The poor woman was rushed to the hospital in bad condition and was under sedation for a few days. My friend’s wife was obviously quite upset and shaken up for days. Everyone in the car was ok and there was no damage but the problem was the pedestrian, she was in bad shape. So My friend pulled out his insurance and got the shock of his life. His GEICO auto insurance policy was so limited and inferior to what a man in his position should have had. Unfortunately he had taken this policy  out over the phone and had not gotten any guidance at all and was strictly looking at the cost of his insurance  and not its limitations. The liability coverage was totally inadequate , he only had a $100,000 liability  coverage and now this woman was in the hospital for almost 10 days now and would need additional attention. He just got a letter in the mail from the woman’s family requesting additional information, so his mind raced with the possibilities of a huge lawsuit and he sought out the advice of attorney who flipped out when the lack of insurance was disclosed. The cheap Geico policy was taken out because of several teenager drivers and the doctor not wanting to spend the extra money. I struggled not to tell him that his daily Star Bucks Coffee could have easily paid for the increases costs of the right coverage and he wouldn’t be freaking out now, but that info would have gone in one ear and out the other. This wasn’t the first time I’ve heard serious  issues like this happening, but this situation was the most dramatic and could have been easily fixed years ago. Needless to say now the right auto insurance and umbrella policy would have been a lot cheaper than the potential lawsuit he faces. His attorney advised him that potentially he could loose his home and suffer losses of bank accounts and other financial attachments, and all of this could have been prevented if he had sat down and taken a few minutes out to address his potential risk. In todays world people always tend to find the money they want to spend on things they want, but rather they never find the money for the things that they need. He needed to have the right insurance to protect his family his business and his assets and now I’m afraid the $100,000 in liability insurance will be used fast and a substantial amount of his personal net worth is at risk. the only people who will be happy about this situation are the two attorneys involved. So this is a real live case, please take this advice, get a review now, don’t let this happen to you, address your potential for problems now before disasters strike.

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You may wish to consult a competent attorney, tax advisor, accountant, or your own financial advisor. EMC Insurance Agency & Financial Services LLC dba I & E Insurance Agency & Financial Services is an Independent Insurance Agency, a Member of the Trusted Choice, Independent Agents of America & PIA contact your own advisors before making any financial decision. Services offered through independent NON-AFFILIATED ENTITIES

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