Dear Dave: Are Umbrella Insurance Worth It? Or do they just make people sue more frequently?
Dear Tammi: I don’t think there is any indication that general policies encourage people to sue more frequently. If you haven’t noticed, we live in a world of prosecution. There are a lot of greedy people out there who would try to sue for absolutely anything, no matter how ridiculous.
I think these types of policies are worth the money. You can get a $ 1 million umbrella policy that attaches to the top of your car and owners liability coverage for $ 200 to $ 300 per year in most places. So if your original coverage for your car and home was $ 500,000, you would have $ 1.5 million in coverage.
If you have substantial net worth, or if there’s just something that makes it seem like someone could get a lot out of you, an umbrella insurance policy is a smart buy.
Dear Dave: My husband and I own a small business. We have a large account providing wholesale items to a customer. Our original agreement was to work on 30 day payment terms, but he is three months behind on the invoice. We live in a small town, and the businesses here are sticking together and helping each other out, so we don’t want to ruin the relationship. Do you have any tips for dealing with this situation?
Dear Hollie: From what you said, I’m guessing this guy isn’t a cheater or anything like that. He’s probably like a lot of small business owners in that he’s just a little bit disorganized. However, you need to correct this behavior.
If it was me, I would go to his office and have a friendly meeting and sitting on things. There’s no reason to start threatening, but he needs to understand that you can’t be his bank. You are also a small business and you need your money.
Ask a few questions and find out what’s really going on. Then let him know that it will help matters if he can be up to date on the invoice by a certain date. You have provided goods and services, and he owes you money, so that’s a fair request. You might think about adjusting your payment agreement to reflect that once it’s up to date, payment must be made within 10 days of delivery from that time.
If this is not feasible, you may need to switch to a cash-only basis of payment – where payment is due on delivery. and if neither of those options work, well, you should probably tell it to find another provider.
Dave ramsey is a financial consultant, author and radio host.