Ultra-high-net-worth clients have liabilities proportional to their outsized wealth, and they need insurance to match, writes ThinkAdvisor.com.
But many pay too much and receive too little protection, the publication says. Among the special coverage UHNW clients should consider are aviation insurance, domestic employee insurance and wine collection insurance, the publication says.
Aviation insurance covers aircraft damage and liabilities related to flight operations, and is a must for those who charter frequently or who own fractional shares. Such insurance limits policyholders’ liability and covers legal defense costs. Most personal umbrella insurance policies, by the way, exclude aircraft-related coverage.
Domestic employee insurance covers medical expenses and income replacement for work-related injuries. And an “exclusive remedy” feature ensures that if a domestic employee collects these benefits after injury, they waive the right to sue.
Then there’s wine insurance. Homeowner policies may need to be supplemented when your client has a sizeable collection. “Scheduled” coverage insures each specific item in a collection. “Blanket” coverage involves a value for the total collection and a per-item limit.
“Implementing a sophisticated coverage strategy that utilizes specialized insurance policies can make a significant difference in providing truly comprehensive coverage for UNHW families,” ThinkAdvisor.com writes.
Ultra-high-net-worth clients have liabilities proportional to their outsized wealth, and they need insurance to match, writes ThinkAdvisor.