Back in September of 2009, Injury Board Attorney, Ben Glass, penned an IB post detailing former wrestler, Hulk Hogan’s, lawsuit against his lawfirm for failing to advise him that his insurance company would have defended his son in an automobile accident caused by Hogan’s son. Now, in a new development, Hogan is suing his insurance company for failing to properly provide him adequate insurance coverage limits, considering his assets or wealth.
Essentially, Hogan alleges that his insurance company failed to upgrade his coverage as his kids got older, his son became a teenager, subjecting him to increased lawsuit exposure. As most of you know, Hogan’s teenage son caused an automobile accident that caused serious injuries to his passenger. His friend suffered a traumatic brain injury in the summer of 2007, when Hogan’s son, Nick Bollea (Hogan’s real name is Terry Bollea), crashed into a tree during a car race. That lawsuit was settled, after Hogan made a large, personal contribution, over and above his policy limits. The company. Wells Fargo Southeast, has provided all of Hogan’s insurance for almost 10 years.
Hogan alleges that the company has received thousands in premiums in exchange for minimizing Hogan’s personal risk, which, considering his wealth, is substantial. Hogan claims he never received advice to increase coverage or purchase an umbrella. The lawsuit states:
"Wells Fargo Southeast had a duty to perform an ongoing insurance evaluation and, at the very least, a yearly or biannual insurance review with Hogan, complete with professional advice and coverage recommendations…"
Since Hogan has an estimated net worth over $30 Million, a review would have shown that Hogan needed and excess or umbrella policy to properly insure his risk. The review and the increased coverage were never provided.
While this may sound like sour grapes to some (and Hogan certainly seems intent on suing those who were supposed to be protecting his best interest), the lesson learned by Hogan and, perhaps, his insurance agent, is important. Circumstances change, net worth increases, children become teenagers and make teenage mistakes. Coverage needs to be reviewed, annually, at the behest of the insurance agent and, if not, the insured. That means you and me! The reason you pay insurance premiums is to off load the risk of financial disaster onto the insurance company. If your subtantial weath is not protected by adquate insurance limits on your home, your car(s), boat, or anything else that can injure others, your personal weath is at risk. Inadequate coverage defeats the purpose of having coverage in the first place.
Lawsuit Financial suggests that you contact your insurance agent, once per year, and review your assets and your insurance needs. You should also discuss uninsured and underinsured mortorist coverage for potential situations when you are injured by someone with no or inadequate insurance coverage. Coverage is inexpensive compared to the expense of paying a catastrophic loss out of your own pocket. Just ask Hulk Hogan.
Attorney, certified civil mediator, and award-winning author of the Zachary Blake Betrayal Series—Mark Bello is also the CEO of Lawsuit Financial and the country’s leading expert in providing non-recourse lawsuit funding to plaintiffs involved in pending litigation. He is also a member of the State Bar of Michigan, a sustaining member of the Michigan Association for Justice, and a member of the American Association for Justice.