No Assets, No Need For Insurance

I read your cover story, “Protect Yourself” in the July issue. To say that it was well done, accurate, and completely correct, would be a gross understatement. It went beyond this terminology.

My background as a Certified Asset Protection Specialist and founder of the Strategic Institute, I believe qualifies me to state the above with some experience.

The area of E&O insurance is a farce–you were too kind and generous in your review. I would instruct my broker friends and clients to skip over the fluff and look at the exclusion clauses. This is where the proverbial rubber meets the road and where the truth of what the insurance carriers will not pay stands out. E&O providers, along with the greater majority of insurance carriers who issue professional liability coverages, are in the business of NOT paying claims. Why waste your hard earned money on a policy that will not provide protection when needed?

I have “professionally suggested” to every one of my clients to structure their respective practices wherein they have no assets for a potential plaintiff to acquire. This is also critical in the broker’s personal assets. As you well know, plaintiff attorneys consider “what can be had” before committing to a client. If the defendant has no assets–or insurance–to insure a proper recovery, then 99.9% of all attorneys and plaintiffs, will elect to walk away. This is something to consider.

Brokers need to perform extensive due diligence on pending clients to avoid litigation down the road.

I have noted your ongoing (excellent) series of articles pertaining to the matter of compliance and professional asset protection. Well done and much needed.

Tom Hudson, PhD, CAPS

Spokane, Washington

Look before you leap, then look again