We emphasize that we seldom suggest asset protection as a complete substitute for liability insurance. Nevertheless, certain high-risk professionals and businesses find their insurance costs prohibitive. Or liability insurance may not be available. Our asset protection plan then complements a low liability policy or substitutes for insurance. The problem with insurance is not only its cost, but that it also attracts litigants. Nevertheless, liability insurance is invaluable for most risk management programs. Cost-effective insurance should be your primary defensive barrier. But be sure to supplement it with an asset protection plan. A lawsuit defendant’s strategy then is to settle a case within the policy limits and have the plaintiff forego further claim against the defendant’s personal assets. You can achieve this only when your assets are well-protected.
A number of our clients – particularly physicians and manufacturers – ‘go bare’ or without insurance. Their insurance costs are simply too expensive. We then make certain they have the strongest defensive plan. Even in these cases we recommend a legal defense policy to cover their defense costs if they are sued. So in many instances, our asset protection plan can save a client tens – or hundreds of thousands – a year in insurance costs.
