Asset protection Part 2

Especially Treacherous Liabilities

Liabilities generally not cancelable in bankruptcy include the following:

  • Government student loans
  • Trust fund tax liability
  • Hazardous waste liability
  • Breach of fiduciary duty liabilities
  • Child support and alimony
  • Medicare, Medicaid, and sometimes private pay refund liabilities of physicians: Carriers have been suing doctors for not following referral laws for significant refunds

Liabilities generally not covered by insurance include the following:

  • Civil rights violations committed by employees or others
  • Environmental liabilities, including sick building syndrome and lead paint issues
  • Criminal acts
  • Charitable and religious board activities
  • Jet skis normally cannot be insured for over $250,000 per occurrence
  • Acts of terrorism: Most casualty insurance clauses exempt acts of terrorism. The industry has been paying claims on goodwill up until now