by Gary Castle

Financial advisers and wealth managers tend to focus primarily on asset accumulation and diversification. This is why we pay them – to make our money grow.

Their plan can take years to develop and will typically experience cycles of ups and downs.  It is highly strategic and typically involves diversification. 

What is surprising is that so much attention is spent solely on growing the asset. How much time is spent guiding you on how to protect it? 

“You can go three lifetimes and never have a claim over $100,000. But if you do, you can lose everything in an instant”

In the event of a personal lawsuit, there is the very real potential loss of most or all of your assets.    

What took years to accumulate, can be taken away in a single event. 

1. What protection do you have if you’re found responsible for an auto accident where people are seriously injured or killed?

If you’re found to be liable that means you will most likely have to pay damages. If your auto insurance limit is $100,000 for bodily injury,  then you foot the bill for every dollar above that. This could mean you’re at risk of losing your home and any other assets you’ve accumulated.

2. What protection do you have if you’re found responsible for serious injury to a person in your home or apartment?

These are the stories you read about in the paper. Someone slips and falls on your driveway in the winter. It’s a serious injury that leads to a lawsuit.  Will your personal liability limits be sufficient to fully protect your assets? 

3. What protection do you have if your household employee gets injured while working for you?

Your full-time nanny falls down the stairs of your home. If you don’t have the required Workers’ Compensation insurance, yes YOU need Workers’ Comp insurance, you will most likely find yourself financially responsible for damages. 

If you’re talking to a financial adviser then you’re building assets. Part of that conversation should include protecting what you’re building. 

You can go three lifetimes and never have a claim over $100,000. But if you do, you can lose everything in an instant.