Asset protection fail – NHL player has minimum legal auto insurance in accident
By Ike Devji
PRO ASSET PROTECTION
It’s hard to believe but it’s true. NHL player Matt Moulson (who has a $9 million dollar contract with the New York Islanders) slammed his Escalade into a Subaru last year and injured the other driver. Not surprisingly, she and her attorney have declined his insurance carrier’s $25,000 offer. Yes, $25,000 is all the insurance he was carrying.
How does a mistake of this magnitude happen?
1. His management (agent, business manager, estate planner, etc.) failed to get him the right legal help. Any competent asset protection planner would have reviewed how many cars he had, where they titled and would have made sure they were insured to max limits and covered with an umbrella;
2. He failed to put enough value on his own wealth and solvency;
3. The insurance agent failed to educate the player on what he needed versus what he wanted. While I was not privy to the conversation, I’d assume he either paid for the vehicle in cash and did not require full coverage for the financing or paid it off and asked, “what’s the cheapest?”
(I’ve actually seen cases where an insurance agent was also sued for not advising on correct coverage limits.)
4. All parties failed to realize that defensive preparation for financial and legal attack is best when implemented in advance as risk management, not crisis management. He should have been ready for this (and to face a universe of infinite risk) before he even got in the car.