Individuals in Coppell, TX, with a high net worth are more likely to face lawsuits, particularly defamation. It’s essential to understand how your insurance works during these stressful times.
Legal Defense
Most policies will cover the cost of a legal defense. However, you might not be able to choose any lawyer you want. Some companies place a cap on the amount they will pay for legal services. Others have a network of lawyers they work with, and you’ll have to choose one of those. An agent at The Select Insurance Agency can help you learn more about choosing a lawyer.
Coverage Limits
Umbrella insurance can help pay for a judgment against you, but every policy has coverage limits. For example, imagine you have a coverage limit of $2 million, but the judgment is for $3 million. Your insurance would only pay $2 million because that is the coverage limit, and you would be responsible for the additional $1 million.
Exclusions Apply
Every policy has specific exclusions, and umbrella policies are no different. While they may help in a defamation lawsuit, the company may deny the claim if it finds that you intentionally said or did things to defame the other person or acted with malicious intent. For example, if you spread rumors about someone with the intention of harming their business, that would be considered malicious.
Facing a defamation lawsuit can be a stressful experience. Thankfully, you don’t have to do it alone. The agents at The Select Insurance Agency are here to help. Contact us. We’re currently serving Coppell, TX.
