Everyone should buy insurance. Asset protection planning is not a substitute for insurance. Liability and professional insurance should be your first line of defense against a lawsuit. Trusts, entities and other asset protection vehicles are merely a supplement to insurance. If you are a professional you should carry the appropriate malpractice insurance and have high enough coverage levels to protect against a lawsuit. If you are a director of a company, directors and officers insurance is prudent. If you run a business, a commercial general liability policy is relatively standard. And, for all those people who don’t perform surgery, own businesses or run companies, there is standard property and casualty insurance. That is your basic auto, home, renters and boat insurance to protect you from the everyday malady.
As your life progresses and your assets grow, your insurance needs will change. Sit down with your insurance professional on a regular basis and make sure you have the proper coverage, limits and deductibles.
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