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Importance of Insurance in Litigious America

If you are debating if you really need insurance or if you could coast by without any problems, think again! America has earned a reputation for being a hostile country for a reason. Back in the day, only the rich had to worry about protecting their pockets, but that is just not true anymore. Whether you are a small startup business, a modest homeowner or part of the 1%, you still need to protect yourself. Here is a simple breakdown of why we need insurance and what is the most important thing to look out for.

Being found liable

The reason that liability insurance coverage exists is that organizations, franchises and even the regular Joe on the street have been for legally responsible for causing damage or injury and have been ordered to pay large amounts of money as a result of this. Duncan Donuts was sued for having a hot coffee spill and burn a customer, and we have all seen those slip and fall adds on TV that encourages us to sue the average person on the street. That is why the insurance industry has been booming for many years. The truth is that as the insurance markets get more saturated, liability insurance is becoming more and more affordable. The odds are that you could most probably go your whole life without being sued at all. People still purchase insurance. Why is that you ask? Because no one wants to be on the short end of the stick and become bankrupt due to legal action.

Being guilty by association

As time has passed more and more people and businesses have had legal issues because of something their spouse or kids have done. Or even for having a shady business partner. In some instances, legal action can be taken against people in that work in a particular profession. For example, an architect designing a home with a significant safety flaw. The architect could have made this mistake unintentionally but could still found at fault and have to pay dearly. That is why Errors and Omission insurance coverage has become a big deal. Here is a list of professions that are advised to have this type of insurance.

  • Accountants
  • Therapists
  • Graphic designers
  • Ad agencies
  • Consultants
  • Lawyers
  • Any consultants

If you are involved in any of these professions, or anything similar, you should make sure you have this type of insurance. Click this link and learn What E&O insurance is.

Where you come from

It probably comes as no surprise, but there are individual states that have a higher litigation rate. This list probably isn’t a big shocker, but here are the top 10 states that tend to sue for frivolous reasons.

  • New Jersey,
  • New York,
  • Florida,
  • Illinois,
  • Pennsylvania,
  • Missouri,
  • Montana,
  • Michigan,
  • Connecticut
  • California

So, you may be thinking that insurance is just an inconvenience, and although you might have a good idea, it is also important to know that it does serve a purpose. Here are the upsides and reasons how insurance helps us:

It’s not just the wealthy and powerful that benefit.

If something goes wrong and you are faced with heaps of medical bills, most of us wouldn’t be able to pay for that out of our pockets. Having insurance plans could save you from losing your possessions and also from going bankrupt. Life insurance is something that the working class society uses to ensure their families are taken care of should the worst possible outcome happens.

Its required by many organizations

Whether you are trying to secure alone or get a construction job, most organizations require some insurance to make sure that their assets are protected. Having an insurance plan will make the process easier. It is also required by law and not having it could be illegal, for example, vehicle insurance.

It helps the economy.

After the wave of recent natural disasters in the US, from flood to forest fires. The only thing that helped our economy from being crippled was that possessions and property were replaced thanks to insurance. Insurance plays a massive role in the world financial markets. Insurance companies invest premium money in start-up companies as well as many governmental programs. This also helps taxpayers pay less on their taxes every year.

We have to admit, that even though there is a place in society for insurance and we strongly recommend that you always have your interests covered. However, we should still take it as just another part of being a responsible adult and also look at the brighter side of things. If you would like a laugh, click on this link to read the Top ten Frivolous Lawsuits.

If you need insurance to advise we suggest you do your research and make sure the policies that you purchase are relevant to the types of risk you face. Not only that, but you also need to make sure that you have a sufficient amount of coverage. Not only do you have to think of state laws and requirements, but also the actual cost that you could ensure during a lawsuit.

Lastly, here is a list of some more recent insurance policies that should be kept in mind:

  • Pet insurance – protect yourself and your pet. Here is a great pet insurance site.
  • Book Club insurance – as ridiculous as this may seem there is book club insurance.
  • Wedding insurance – This could be viewed a being odd or significant investment.
  • Alien abduction Insurance – yes this exists too!

This blog will lift your spirits and even make you laugh a little – strange insurance.

I hope this article has been informative and hopefully fun too, But most importantly I hope it has convinced you how important insurance is. Get yourself covered !!

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