When professional wrestler, Hulk Hogan’s son got into an auto accident that left a young man seriously and permanently injured, Hogan’s insurance company paid $250,000 to the man. That was not enough. According to a digitalspy.com article, Hogan, whose real name is Terry Bollea, was worth about $30 million at the time of the crash. His son was on his insurance policy. Hogan had to reach into his own pocket to pay an undisclosed monetary settlement that will help the young man with care for the rest of his life. He was underinsured.
Now Hogan is suing Wells Fargo Southeast, his insurance broker, claiming the company failed to inform him of what would be appropriate coverage. Wells Fargo Southeast “knew or should have known” of Hogan’s liability exposure and should have encouraged him to purchase an excess/umbrella policy to cover his assets, says the lawsuit. Wells Fargo Insurance Services is also named in the lawsuit. The lawsuit was filed April 22 in Pinellas County, Florida. Hogan and his family live in Clearwater.
Hogan has spent tens of thousands of dollars with the same insurance broker for about a decade. He has purchased watercraft, flood, comprehensive liability, business insurance from him. When Hogan added two teenage children to his policies and Hogan signed for his son’s driver’s license, it exposed him to more direct liability, yet his insurance remained the same.
Hogan should have been advised to purchase an umbrella policy which typically offers very high rates of protection, starting at $1 million. They can cover physical and non-physical injuries. They are designed to go beyond personal auto, homeowner or boat insurance policies. An umbrella policy can protect you if you serve alcohol to guests in your home and they get into an accident, if you have a pool and someone is injured, if you have kids on your policy and they get into a horrendous accident. Like many people, Hogan had a primary insurance policy for $250,000.
Umbrellas are relatively inexpensive so it is good advice for anyone with any net worth, even a modest net worth to buy one. It will be interesting to see if because Hogan’s teenage son was drag racing whether an umbrella policy would have covered the family at all. Make sure you understand the exclusions. Any illegal activity is probably not covered. Learn from this celebrity’s mistake and make sure you are covered in almost any eventuality.