As executives and other successful business people climb the career ladder, they accumulate wealth. But many of them don’t consider how their exposures change from year-to-year.
They may turn to independent agents and brokers for help — but often only on the heels of an unpleasant situation, mishandled claim or the inability to secure coverage on an important asset.
You didn’t become successful in business by taking a reactive approach to risk. So, why wouldn’t you take the same stance in your personal life?
Smart Business spoke with Tim Able, director of sales & marketing at SeibertKeck Insurance Agency about how high net worth individuals need to proactively approach their property and casualty insurance.
How do you know if you’ve outgrown your current insurance?
As your earning power and assets increase, you may not be receiving proper guidance from professionals who are familiar with the market you are now in.
It’s not uncommon to believe an agent employed by one of the major, mass-market insurers is still your best source for advice or to mistakenly think that all insurance policies and companies are alike.
For example, you may believe that you already purchased the maximum available limits, but you can buy personal excess liability or umbrella policies with limits that go above $10 million from a select group of insurance carriers.
In addition, you now face some unique exposures that your agent or broker needs to be able to discuss, such as international property, private staff liability, board of directors involvement, special event coverage for large-scale home entertaining, exotic collections or parental liability and social media.
Is it common that high net worth individuals are underinsured in their liability limits?
Most wealthy U.S. consumers do not carry adequate coverage to protect their family and hard-earned assets, and discussing liability limits is one of the most vital topics in the insurance conversation.
You need to have a comprehensive risk profile that requires exploring you and your family’s lifestyle, purchase and investing habits, in addition to geographic presence and future aspirations.
How can a risk manager provide value-added service, versus a non-specialty insurance broker?
Your needs become increasingly complex as your personal wealth grows. So, you should take advantage of the value-add services and unique offerings that can improve your risk profile, such as:
- Annual risk analysis.
- Dedicated claims teams.
- Preferred vendor access.
- International capabilities.
- Travel accident and medical evacuation coverage.
- Digital home inventory.
- Fine arts specialty coverage.
- Notary services.
- Personal security consultation.
- Domestic employee exposure.
What do you tell people who hesitate to switch providers out of loyalty?
Fifty-nine percent of consumers would likely switch providers if their insurer was unable to offer solutions meeting all of their unique needs. The problem is you may not realize that your needs aren’t being met.
Personal insurance and financial protection for your family and your assets is critical. You deserve adequate coverage and above-and-beyond service, even if it means switching to another provider.
In our litigious society, jury verdicts and settlement amounts are higher than ever. Those with deep pockets can become targets for liability lawsuits. Adequate protection has to be a cornerstone of your insurance portfolio.
Insights Business Insurance is brought to you by SeibertKeck
