Don’t underestimate the threat of personal liability lawsuits
The Globe and Mail, Chris Atchison
Because lawsuits exceeding $2-million are commonplace nowadays, even less-wealthy individuals need substantial personal liability coverage, says Cynthia Kett, principal at Toronto’s Stewart & Kett Financial Advisors Inc.
She advises her high-net-worth clients to carry umbrella liability policies, but she stresses that the amount of coverage doesn’t need to correlate directly with their net worth.
“I don’t think it’s relative to assets,” she explains. “I think it’s relative to exposure to situations that could create liability.”