This story is not particularly noteworthy, except for one fact. The athlete’s liability insurance limits are a minimal $25,000 (in Connecticut drivers are required to maintain a minimum of $25,000 in liability insurance).
The athlete’s insurer has offered up the $25,000 policy limits to settle the claim of the injured woman. However, she claims that her claim is worth much more in light of her injuries. The athlete’s lawyer says the woman is trying to extract money from his deep-pocketed client; and the woman’s lawyer maintains that the $25,000 offer is an insult. Due to the athlete’s minimal insurance, any settlement or judgment over $25,000 will have to come from the athlete’s pocket.
The obvious lesson is to purchase sufficient automobile liability insurance. But there is another lesson for the athlete – surround yourself with professionals that can help you avoid such costly, not to mention embarrassing, situations. Often times, an athlete needs more than just an agent. An athlete should engage other professionals, such as a lawyer, accountant and financial planner to provide the best possible advice and to ensure that something as simple as automobile insurance doesn’t fall through the cracks.