A lateral semiconductor device having a vertical region for providing a protective avalanche breakdown (PAB) is disclosed. The lateral semiconductor device has a lateral structure that includes a conductive substrate, semi-insulating layer(s) disposed on the conductive substrate, device layer(s) disposed on the semi-insulating layer(s), along with a source electrode and a drain electrode disposed on the device layer(s). The vertical region is separated from the source electrode by a lateral region wherein the vertical region has a relatively lower breakdown voltage level than a relatively higher breakdown voltage level of the lateral region for providing the PAB within the vertical region to prevent a potentially damaging breakdown of the lateral region. The vertical region is structured to be more rugged than the lateral region and thus will not be damaged by a PAB event.