Defense Costs Insurance
Defense costs can be very expensive because you have to pay for court costs, a lawyer, the gathering of evidence, and so much more. How much the costs are depends upon what you are defending yourself against. Even if you know or feel that you are innocent, be prepared.
Any time you purchase liability insurance, defense costs should be covered within that policy. Liability insurance is designed to protect you against accusations that you caused harm to someone else. In other words, it is insurance that covers you in the instance that you are held liable for an act (that might normally be covered under bodily injury protection) so that you do not have to be ruined financially.
It is unfortunate that individuals who make a single mistake lose everything that they own. Not only do they lose everything they own through having to pay the amount of money that will satisfy the damages that they are responsible for, but the various defense costs. The defense costs can be extremely high. The Defense costs insurance will pay the defense costs and up to the coverage limits that will help to pay the liability.
Even if a lawsuit has no merit, there are still defense costs that are to be had. A lawsuit without any foundation is one that becomes a waste of everyone's time and costs money, but this is something that defense costs insurance is made to protect against - costs that should not have been required in the first place and also the ability for a person or business to remain functional despite a simple costly mistake.
Who is Eligible?
Anyone is eligible for defense costs insurance if they feel that there is a reason why someone could lodge a complaint against them. For instance, an individual may be involved in many public activities. If they are out in the public eye often, it may not hurt to have defense costs insurance, especially as part of a complete liability insurance package.
Businesses benefit from defense costs insurance and usually as a part of their liability insurance policies. Businesses can frequently be held liable for events that lead to them having to pay for their defense. In order to not compromise a business's bottom line, it is important to be insured or the business could suffer based on the amount of the liability.
Virtually anyone who wants to be protected against liabilities can benefit from defense costs insurance. The insurance doesn't have to be expensive either. It can be affordable so that you can have the protection that you need to go on every day without the worry that someone is going to file a lawsuit against you.
You can purchase varying limits. How much you purchase depends on what you can afford. You can compare different policies to ensure that you are receiving the best coverage for the price. Just make sure that you choose enough based upon the activities that you will be engaged in that could result in a lawsuit.
The best way to determine how much defense costs insurance protection is enough is to look at lawsuits in the field or area in which you are involved. Look to see what has been settled for and what juries have awarded and this will give you an idea of how much coverage you need.
Know, however, that there are exclusions. These exclusions usually cover any acts that are intentional. The idea of insurance is to insure an accident and not an intentional act. If it would insure intentional acts, then more people would commit acts for financial gain knowing that their insurance would cover the cost while they pay a simple premium.