Asset Protection Insurance
Asset protection insurance became popular in 1970s but really started to take off in the late 1980s and 1990s, as growing American prosperity motivated more people to look for ways to protect their hard-earned wealth. Today, asset protection insurance has become a common element in financial planning for many Americans.
Asset protection insurance has grown in popularity as an alternative to hiding your assets in an offshore account in the Cayman Islands or Switzerland. Instead of using those hidden or secret accounts to hide your assets against potential losses (from lawsuits, creditors or a drop in value), you can use asset protection insurance.
So what does this have to do with us?
Well, asset protection isn’t just for the rich and elites. In fact, asset protection insurance is already part of practically all insurance policies most Americans rely on every day. Homeowners and automobile insurance protect two of our most common assets, our home and car. In addition to protecting the value of our homes and cars, these two types of insurance also provide liability coverage, which protects us against lawsuits and claims.
Businesses have a more pressing reason to rely on various types of business insurance for asset protection. They need insurance to provide the asset protection they need to better manage risks and handle potential losses.
Here are some of the most common asset protection insurance used by business owners and entrepreneurs of all sizes and industries:
- General business liability insurance. This basic insurance policy covers the business owners from a variety of lawsuits, including personal injury claims, discrimination complaints, errors and trademark violations.
- Malpractice Insurance. Although medical malpractice insurance is the most commonly recognized, professionals of all stripes need malpractice insurance. Attorneys, architects, structural engineers, nutritionists, mortgage brokers, real estate agents and even insurance brokers need some sort of malpractice coverage—in lieu of or in addition to liability insurance. Often it is referred to as errors and omissions (E & O) insurance.
- Director liability insurance. Corporations and non-profit organizations both require a board of directors to guide them. The members of this board often have to make decisions that can expose them to complaints, lawsuits and claims. That’s why many people refuse to serve on a corporation’s or organization’s board unless they have adequate director liability insurance.
Asset protection insurance usually doesn’t replace income or revenue. Rather it protects against potential losses that could reduce a person’s or business’ assets or value.
Your home, car, boat, savings account and business are all assets you’ve accumulated over the years. Asset protection insurance policies give you a better chance of hanging on to all those assets if a serious liability ever arises in the future.
The good news is that you’re not alone. At Critical Illness Policies, we can help you explore your best options and tailor a plan to meet your needs. Call us now at 1-561-210-5822 and speak to our experienced and helpful agents to get the answers you deserve.