Why HNW Clients Need Specialized Insurance

Why HNW Clients Need Specialized Insurance

One thing about the wealthy: they usually own a lot of stuff.

We aren’t talking about knick-knacks and souvenirs – we mean valuable artworks, luxury autos, sleek sailboats and motor yachts, rare jewels and fine watches, full wine cellars and extravagant vacation homes. The list could go on but we don’t wish to incite envy.

Those without so many treasures can comfort themselves in this: they don’t have the headaches and the worry, either. Expensive assets need extensive insurance protection and the fact is that many high-net-worth families and individuals lack the necessary policies. The extreme value of such holdings introduces potentially fatal risk to both lifestyle and legacy. While evidence suggests that many rich people are under-protected, it isn’t for lack of efficient tools to insure them.

Intelligent advisors will find an opportunity in filling this worrisome gap in their rich clients’ defenses. The tool of choice is personal excess liability coverage. Traditional homeowner, auto or similar insurance policies have their limits for rich clients and usually need some bolstering.

Our linked article gives the example of auto insurance. Instead of insuring their cars (and they may have a good many), wealthy clients can insure the drivers in their household – even a chauffeur – with personal excess liability insurance that covers the driving of any car in the fleet. This approach is cheaper than insuring each car sufficiently to cover a wide range of drivers.

Specialized insurance varieties are not limited to asset protection. For example, the directors of non-profit organizations are sometimes held accountable for actions taken by the group. NGO directors are usually wealthy individuals, making them particularly vulnerable to legal action. Coverage is available to protect directors from this distinctly modern-day risk.

Life Insurance and Wealthy Clients

For more information, please read:
The Secret Key to Protecting Your Client’s Wealth | Wealth Management


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