Why Do I Buy Liability Insurance?

FEBRUARY 12, 2018

Why do I buy liability insurance? A lot of questions come to me on a daily basis; what limits should I buy? As a consumer, what do I buy? You buy your liability based on your assets and your ability for future earnings. So, if something happens and you are under insured, whether it is intentional or unintentional they can sue you for your future worth. This is relevant especially if you are a student. As a student, you’re looking into the future, you’re planning for your future, so when it comes to buying liability insurance we calculate how much you will have in assets. We make recommendations based on that.

Alternatively, if you live on social security, have a minimum income, or do not have the ability to make money we always refer back to the state limits. What insurance is meant to do, and what we try to achieve, is in the event of a loss, to place them back to where they were prior to the loss. And state limits are the MINIMUM. We tend to recommend more, but at the same time it’s better to have some coverage as opposed to NO coverage or NOTHING.


How do I go about finding out what my future income is? Or what prevents me from just getting minimums and calling it good? What’s the real benefit?

There are reports we have access to that establish projections of what a person is estimated to earn in the future. Think about it like this. If you were to purchase insurance on a million dollars in the bank, you would buy a million dollars of coverage, because you don’t want to take a loss and WE want to put you back where you were at before the loss. However, let’s say that you are going to continue to earn money on that money, over a period of time one million increases to 1.1 million. Then you can easily see that, coverage just for one million would be insufficient. And like the example above, if certain losses occur, a person can sue against that 100,000 BEFORE you have it! So, the risk we are trying to protect against, is not just what you have now, but what a person is working to become.

We are available five days a week to go into depth with this and many other questions like this related to insurance. Give us a call or stop by our office from 9am to 6pm Monday thru Friday and 9am to noon on Saturday.

As most elements of the business marketplace move to an online digital platforms, the question of material relevance of a brick and mortar location is more frequently brought to mind. Amazon® is a perfect example. We can look now at how they are re-positioning their business and see, that even with the monstrous size on their online brand, they have established a value in a brick and mortar locations through Whole Foods® and Amazon Books®. Insurance is no different.


Online insurance sources abound with all the offerings and diversification one could ever imagine. However, are you sure this insurance is relevant? What do I mean by relevance? Let me explain.


In a world full of goods, services, and sale people to match, many are the ones that will be MORE THAN HAPPY to sell you something; this happens whether you need the product or not. Insurance, unlike a lot of products on Amazon, is NOT necessarily one of those things that are as straight forward as the Echo Dot®, Cards Against Humanity®, or a holiday scarf. Insurance DOES have quite a number of “ins and outs”.


At Free State Insurance, we are an independent insurance agency. That allows us to work with a wide variety of insurance carriers like Progressive®, Traders®, Travelers®, Lititz Mutual®, and The Hartford® to craft insurance policies that meet YOUR individual needs to cover YOUR risks. This may sound like a convenient sales pitch, but it is RELEVANT! Every person is in a different period or stage in their life. The concerns of a new driver are different than someone who has driven for 30 years. The exposures of a new home are different than an older one or a property in a rural location versus the city. Our licensed and qualified agents walk you through these various elements, teaching and explaining when necessary. THIS is the value of what we do!


Explaining coverages, state and national guidelines, and billing details are all things WE DO for our clients everyday. From a servicing standpoint, we execute endorsements (policy changes), accept cash payments, and perform routine policy maintenance to ensure our clients have the best deal in their market. We save you time by doing the leg work for you!


Stop by our office located in beautiful Lawrence, Kansas and let a local family owned and operated organization earn your trust today so that we can insure your family now and into the future!


Free State Insurance Agency

917 Iowa St.

Lawrence, KS 66044

(785) 865-3500