Liability Insurance: What It Is And Why You Need It

The Hidden Costs of Under-Insurance

Did you know that an overwhelming number of policyholders are underinsured without realizing it? This oversight often surfaces during the worst possible moments—right in the heat of a legal battle. Shockingly, 60% of businesses and individuals unknowingly fall under this category, leading to financial shocks that could have been avoided.

For example, business owners often assume their standard liability policy will protect against everything from slip and fall incidents to employee-related claims. However, exclusions related to cyber threats or personal injury claims can leave businesses exposed, facing potential bankruptcy.

The devil is in the details. Policies can be baffling, with terminology that seems intentionally obfuscating. Many people, in attempts to save on premiums, unknowingly lower critical coverage thresholds, trading short-term savings for long-term risk. But here’s a curious point: what if enhancing your coverage was simpler—and cheaper—than you thought?

A sit-down with a knowledgeable insurance advisor can not only illuminate these gaps but also reveal discounts and bundling opportunities that can prevent your financial woes. However, it’s not enough to just know what’s missing—where you get enlightened could alter the arc of your financial future.