In today’s overly litigious society, defending a lawsuit often means expending large amounts on legal fees just to defend against a claim, even if the claim is not legitimate. It takes additional money to potentially settle a claim in order to avoid even higher legal fees required to take the matter to trial and risk a potentially larger jury verdict against you.
The first thing to do is analyze your potential exposure; see what assets you have and how they could be attached by a potential creditor. Exposure could arise from a variety of sources including:
- A professional practice liability
- Corporate contract liability
- Audits from insurance carriers
- Matrimonial liability or some other personal exposure