NU Online News Service, July 26, 2:40 p.m. EDT
Sufficient insurance coverage for personal risk is on the minds of a significant number of chief executive officers, a new survey reveals.
The joint survey, released today by New York-based insurer Chartis and Greenwich, Conn.-based publisher The Chief Executive Group, asks 200 CEOs what risk concerns keep them up at night.
Close to 43 percent of respondents say they worry that their current levels of insurance are insufficient.
When it comes to auto and home coverage, well over 90 percent were confident they had enough coverage for these assets. However, when it comes to other aspects of their lives, they were not as confident, the survey says.
The survey notes that because of the accumulation of wealth and their high profile in the community, CEOs are exposed to risks such as responsibility for people working around the house and sitting on for-profit and nonprofit boards.
Concerning household workers, almost 79 percent were not confident they had enough coverage to cover the risk.
Regarding coverage on boards, 76 percent were not confident of adequate insurance coverage on for-profit boards, and 70 percent were not confident about coverage on nonprofit boards.
For those serving on outside boards, only 59 percent said the board has D&O insurance.
While most CEOs say they serve on their own company’s board, nearly 25 percent say their company does not have directors and officers coverage.
Overall, 52 percent feel their companies provide them with enough liability coverage.
The survey recommends that CEOs ask each of the organizations they serve on to provide them with a copy of the D&O policy so it can be reviewed and they can determine if there is an adequate amount of coverage there.
CEOs, the survey found, fail to review their overall insurance needs and coverage annually, with only 65 percent saying they make the review.
“While it’s encouraging that the majority of CEOs are up to date with their insurance needs, more than a third of CEOs are not up to date with their personal-insurance review,” the survey says. It recommends that CEOs should “schedule an annual review of your insurance needs with a trusted advisor. If you don’t have one, find one.”