In the late 1970’s, when I first started my career as an Insurance Broker it was common for people to carry liability insurance limits of $500,000. Then we saw the value of law suits increasing. This lead us to recommend to our customers that they carry at least $1,000,000 limits.
By the turn of the century it was common to go up to $2,000,000. This is where most of our clients are with limits today. For those who have liability risks concerns top of mind, we have to be able to provide increased liability limits in the range of $5,000,000 up to $8,000,000 or even $10,000,000 by providing a Personal Umbrella Liability insurance policy.
I find that in far too many cases today, Statements of Claim which are coming out of law offices are increasingly starting to demand damages of $3,000,000 or greater. Imagine the frustration someone feels when the insurance limits they carry are not high enough to cover the Statement of Claim that has been filed against them. In such a case where someone has $2,000,000 liability insurance limits and there is a $3,000,000 Statement of Claim, their insurance will defend the limits of the policy and the insurance company will have to recommend to the customer that they secure legal defense themselves outside of the insurance to defend the uninsured portion of the writ.