No money, mo' lawsuits

Our economy is hurting. No doubt about that. And with the pain from the economic downturns, every family, friend, and client I know is keeping a closer eye on their finances. So how about insurance? Time to drop your coverages and save some pennies?

I'm reminded of a conversation I had a while back with a family member, a paralegal in a prestigious law firm here in Sacramento. A year or two ago, she told me, "Asher, you have to understand. When the economy goes south, our office gets noticeably busier. The more desperate people get, the more angry they get, ... and the more angry they get, the more they blame others for their problems. More blame equals more lawsuits." A sad comment on humanity, ... but it totally makes sense.

Think about it. Suppose you caused an accident today that left the injured party needing to be rehabilitated and retrained for a new career. Are the chances better or worse than before for him to find a new place of employment after the accident? Do you think his overall perception of the economy and his earning ability would prompt him to settle the claim quickly or drag it out? What does that do to your legal tab when you are at fault for his suffering?

In times like these, you can't afford to be without proper liability coverage. Keep your liability limits where they should be. Perhaps raise your deductibles if you need to save some bucks. Just don't leave your assets exposed to the increasingly desperate public.