When people are buying liability insurance, they surely wish to get a full financial protection in case a claim is sent to them. For this purpose, they try to choose the most suitable coverage. Different insurance coverage usually gives different benefits. The broader the coverage is, the more the benefits are. Unfortunately, many people forget about defense costs. In fact, defense costs are all costs related to legal costs and court costs. Defense costs are usually really expensive because it may include costs of filing legal papers, attorney fees, costs of expert witness, court costs and investigation costs. Even though you have been covered by your insurance, you might still need to pay for the expensive defense costs. As a result, you probably end up in losing lots of money in your effort to defend yourself against a lawsuit.
What is Defense Cost Insurance?
Thankfully, there is defense cost insurance. If you are interested in learning about defense cost insurance, you can surf the web and find a reputable insurance site to find comprehensive information about this insurance. Basically, defense cost insurance can protect a person from expensive defense costs. Those who have this insurance can defend themselves against a lawsuit with peace of mind as they do not need to think about court costs and legal costs. Whether it is fee for attorney or a cost to file legal papers, it will be covered by defense cost insurance.
Types of Defense Cost Insurance
Defense cost insurance is usually offered in two ways. They are as the followings:
As a part of the insurance policy’s liability limit – If defense cost insurance is considered as a part of policy limit, the amount of defense cost is up to the liability limit. This means that if the defense cost is higher than the liability limit, the insurance holders must pay for the rest. In fact, because defense costs are usually expensive, those who choose to get defense cost insurance using this method usually must prepare more money.
As a separate coverage – Defense cost insurance that is offered as a separate coverage will provide a full protection to those who are defending themselves in the court. In most cases, this method is considered better than the previous one. As a separate coverage, defense cost insurance will pay all the defense costs no matter how much it is. Meaning to say, insurance holders can be fully protected.
Buying Defense Cost Insurance
Before buying defense cost insurance, you will need to know whether you really need it. This is important to consider because not all people actually need this insurance. However, if your profession or job might cause lots of lawsuits, you must consider yourselves as a person who has the eligibility to buy defense cost insurance. Then, it is necessary for you to make sure that the limit is sufficient. Insurance buyers are recommended to read their insurance policy carefully to know the details about their defense cost insurance. Moreover, it is important for insurance buyers to buy defense cost insurance only from a reputable insurance company because the quality of an insurer determines the quality of their services.