What is a wrongful death?
Wrongful death statutes were created to protect the rights of beneficiaries in the event of the death of a loved one, when caused by another person.
What types of acts allow for wrongful death suits?
Claims of wrongful death can occur from your negligent acts or default including auto, ATV, snowmobile and/or boating accidents in addition to the activities of daily life (hosting parties, conditions of your owned or rented properties, sporting activities, volunteer work, etc.)
Who can bring action?
The surviving spouse and/or children and/or other heirs may bring action for a wrongful death.
When can they bring action?
Plaintiffs can bring action against you any time within the first 3 years after the incident. (Previously, it was 2 years!)
What is included as damages in a Wrongful Death claim?
You could be responsible for the following;
1. Pecuniary damages including loss of income or financial support: No Limit
2. Funeral expenses, medical expenses, hospital care etc.: No Limit
3. Punitive damages: New Limit $500,000 (2023)
4. Loss of comfort and companionship, including damages for emotional stress: New Limit $1,000,000 (2023)
How can I protect myself?
It may be time to supplement your insurance program with a Personal Umbrella Policy (or a Business Umbrella Policy). The recent change in law increasing a wrongful death claim to $1,000,000 creates an even greater chance of a high limit award in the event of a really bad accident.
What is an Umbrella Policy?
Similar to your rainstorm umbrella, an Umbrella Policy is a canopy of protection fitting over and above your various personal or business liabilities (homeowners, auto, ATV, snowmobile, boat, etc.) It can be purchased in increments of $1,000,000.
Are Umbrella Policies expensive?
Personal Umbrellas are surprisingly affordable. The premium is based on all your underlying exposures (# of vehicles, # of homes, # of ATVs, etc) and the age of your operators. For instance, if you own 1 home, 2 autos, 1 boat and no youthful operators the annual premium for $1,000,000 policy could be as low as $200 per year or $17/month.
What should I do now?
Contact your agent today to review your liability limits in light of the changes to this new law.