If anyone has any doubts about the ridiculously litigious climate in which we live, the news is full of examples, such as the fast-food companies being sued for making people too fat or the theme-park that was sued because their haunted house was too scary and caused a woman to incur severe “emotional distress.”

In addition to the increased exposure from medical malpractice, physicians, as well as other higher-income professionals, are also targets of frivolous negligence lawsuits, such as the lawn guy’s leg injury on the job or the “victim” in a fender bender who suddenly has a neurological condition after discovering the other party – in this case, you – has MD after his or her name (note: there was a great Brady Bunch episode on this very topic).

Liability coverage, often called an Umbrella Policy, is usually available as part of one’s home-owners or auto policy. Since it is essentially an add-on, this coverage tends to be very cheap – on the order of a couple of hundred dollars for one or two millions dollars of protection – especially when one considers the alternative.

A few caveats, however. These policies don’t cover you for any intentional acts. There is also often a limit to how much coverage you can purchase. Last, this is protection against you personally, such as a slip-and-fall on your private property. For liability protection related to your practice-related property or activities, consult your insurance agent for business insurance coverage.