Posted by Dave (CA) on March 07, 2001 at 14:45:18:
I agree with you on the gross negligence. You can definitely be proactive about things. I’m not sure what the insurance company would do. In your case, it really doesn’t do them any good to fight a $5M judgement unless they think they can get it reduced under $1M. Let’s look at a different scenario. What if you (or your kid) gets in an auto accident that’s your fault. Again, a judgement is rendered that is greater than your auto insurance. So they’re going to go after the equity in your house and rental property. But if you have the rentals in an LLC, I don’t believe they can get to them. True?