Considerations Affecting Insurance Decisions of High-Net-Worth Individuals
Originally published Spring 2019
• Inadequate excess (umbrella) liability limits; time distraction, and expense of being sued.
• Contingent liability from acts of young children, adult children with parents' vehicles, household employees, or loaned equipment.
• Increasing frequency and severity of cyber liability claims. The average loss arising from "social media" was more than double that of the average "traditional" personal injury (liability) loss (Gen Re Personal Liability Cause of Loss Study 2013)
• Fine art works, collections, and jewelry: Deficient inventory tracking Outdated valuations: undervalued Provenance issues
• Texting while driving, cycling, and walking.
• Rental property risks. (These comprise 20% of non-automobile personal umbrella losses - Gen Re Personal Liability Cause of Loss Study 2013)
• Turnover in key employees leading to break- down in communication with insurance broker.
• Insurance coverages not placed with a high-net-worth insurer.
• Private foundations with inadequate liability protection. (Currently around 80,000 private foundations in the US [foundationsource.com])
• Dangers of unmonitored 'toys' such as jet skis, dirt bikes, and snowmobiles.
• Uncompensated for-profit board activity in non-public companies, where stock options are offered and the company does not maintain any, or there is inadequate, directors and officers liability insurance.
• Service on not-for-profit boards of directors: inadequate or non-existent Directors and Officers insurance.
• Fragmented insurance program using more than one broker.
• Understanding coverage provisions and exclusions in the insurance program.
• Trusts: failure to make appropriate and adequate provisions in the insurance program.
Chartwell Bulletins are produced by Chartwell Insurance Services, Inc., an independent insurance broker specializing in the personal asset protection of high-net-worth individuals. Chartwell Bulletins address issues of general interest and since coverages vary by company and by state should not be taken as an interpretation of a particular policy or advice on any individual situation.
A representative of Chartwell Insurance Services will be pleased to discuss all aspects of your personal insurance.
Contact: Rebecca Korach Woan 312-645-1200 or email@example.com