Between business ventures, vacation homes, time zone hopping and a personal staff, one thing is for certain: The lives of the rich and famous are never boring.
If you have high net worth or high-profile clients, pay attention: Your clients’ extraordinary lives put them a greater risk for insurance claims, lawsuits and other challenges. In order to help protect them, you need to uncover the hidden dangers.
Our latest ebook, Risk Management for the Rich and Famous, explains why high net worth and celebrity clients are uniquely exposed to risk, which liabilities are most commonly overlooked, and how to develop a comprehensive and strategic risk management plan. Below, we highlight a few key points.
More than Jack and Jill’s Insurance Policies
From the outside, wealth and celebrity appear to be a life of indulgence, luxury and security. In reality, a great deal of hard work goes into building and sustaining a high-profile life, as well as managing the challenges that accompany fame.
High net worth and celebrity clients face unique circumstances that put them at greater risk than the general public. Among these are potential loss, perceived tolerance for loss and complex exposures. These areas must be considered on a case-by-case basis to effectively identify and offset or transfer risk.
Top Vulnerabilities and Exposure Blind Spots
Your clients’make them uniquely vulnerable to financial loss. One of the most overlooked risks? Employees.
Personal assistants, drivers, nannies, household employees, cleaning staff and more must all be properly insured. This includes legally required policies such as workers’ compensation, and other insurance best practices, including employer’s liability and employment practices liability.
Because of their close and intimate proximity to clients or their assets, employees must also be adequately vetted to ensure they are trustworthy, qualified and properly trained.
Risk transfer includes a portfolio of actively managed insurance policies. But for individuals with significant wealth or fame, offsetting risk should go beyond insurance. In some cases, this includes strategies that avoid the need for additional coverage.
Risk management is a more comprehensive approach to offsetting personal liability and risk, and is tailored to the unique lifestyle and liabilities of the client. Ultimately, the recommended strategy should be uniquely tailored to your client’s life.
The lifestyles of your high net worth and celebrity clients are complicated, and their risks are equally complex. Are your clients adequately protected?
As an advisor and confidant, you help your clients spend and save their money. Now, it is time to help them protect what they have and position them for continued success.
Download our ebook to learn more about the insurance of high net worth and celebrity clients.