11 Sep The Importance of Identifying Personal Liability Risks

It’s impossible to avoid accidents, they can happen quickly and unexpectedly. Unexpected injuries, property damage, or lawsuits can quickly drain your bank account if you are not adequately covered. Many homeowners underestimate personal liability risk. In 2020, only 1 in 1,100 homeowners policies filed a liability claim, but these rare cases often come with substantial costs: the average bodily injury or property damage claim ran about $29,752, second only to fire and lightning. 

Why Identifying Liability Risks Matters

• The frequency and severity of lawsuits is increasing, particularly from auto incidents, public injuries, and flooding litigation. 
• The average liability payouts exceed standard homeowners limits, so just one lawsuit can impact your assets.
• Businesses report a 50% rise in property damage claims and a 40% increase in bodily injury costs from 2018 to 2022

How to Identify and Mitigate Personal Liability Risks

1. Inventory Exposure: List properties, vehicles, business roles, and “attractive nuisances” you may be liable for.
2. Review Your Policy: Check limits and endorsements, especially for foreign travel, domestic staff, social media, pets, etc.
3. Compare Risks: Ensure your exposures are covered. Fill gaps with endorsements or umbrella policies.
4. Document Assets & Entities: Ensure LLCs or trusts are properly named in policies to avoid gaps. 
5. Boost Limits: Consider raising liability limits; umbrella policies can be surprisingly affordable.
6. Contact an Expert: We’ll identify exposures and recommend prevention strategies through a free risk assessment. 

The IQRM assessment uncovers the most important factors that can affect your risks. You will receive a score, along with feedback on how you are doing today concerning your handling of risks. A personal liability risk assessment today can save you time, money, and stress tomorrow. By being proactive, you’re not only protecting your assets—you’re maintaining a clear conscience and ensure you are set to face any unexpected setbacks. 

Take our Intelligent Quotient for Risk Management assessment – a quick non-invasive tool that takes less than 5 minutes to complete. You’ll receive a free evaluation score that uncovers your personal liability risks. 

TAKE ASSESSMENT NOW

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