Asset protection attorneys assist clients with domestic and offshore trusts, limited liability companies, and a variety of other asset protection alternatives.
I have recently reminded a number of clients, however, that they should not overlook one of the simplest and most effective asset protection strategies — insurance.
When was the last time you reviewed all of your insurance policies? While you may have health, life, homeowners, auto, professional malpractice and other insurance, have you recently analyzed whether your coverage is adequate? Things change very quickly these days, and the amount of insurance you had five years ago may no longer be adequate.
I realize that insurance costs money, so there is always the issue of how much is too much. But for anyone with significant net worth, it is highly advisable to err on the side of having a bit a more insurance than less.
An umbrella policy is a great way to get extra liability insurance coverage for a relatively low cost. This type of policy provides excess coverage for your auto, home and possibly other insurance policies.
Insurance does not cover all risks. So a thorough asset protection review certainly does not end with your insurance coverage. On the other hand, insurance should certainly not be overlooked; and it can be a very important part of an asset protection plan.