The basic point of this article is how Hulk Hogan got sued by a person who his teenage son hit with a car registered in Hulk Hogan's name. This personal injury lawsuit was a big lawsuit because the victim was injured in a severe way.
In this lawsuit, Hulk Hogan's personal assets were exposed because his car insurance coverage was too low. Generally, your car insurance coverage should be a million dollars if you have substantial assets. Plus, an umbrella policy is a good idea. The reason asset protection is important in this situation is because your teenagers may get in an accident and cause damages to another person(s). Unfortunately, insurance coverages can be inadequate or often times, insurance carriers deny claims. Neverthless, Hulk Hogan would have settled this matter for a much better settlement if asset protection had been established prior to a lawsuit. Asset protection increases negotiation leverage because your assets may not be seized in case of a lawsuit, or at least your personal assets are judgment proof.
Asset protection is a strategy of protecting one's assets prior to a lawsuit. Proper asset protection is not fraud and it combines trusts and business entities such as LLCs to maximize protection of personal and business assets.
Sean Robertson is Principal and Attorney of Robertson Law Group, LLC. Sean Robertson concentrates in Asset Protection, Estate Planning, and Corporate law. Sean Robertson can be reached at 312-498-6080 or 630-364-2318.