In order to help high-net-worth clients maximize their liability protections, it's important to understand their lifestyles through the development of a personal risk management strategy.
This discussion is a positive dialogue, which includes defining goals and objectives, identifying and analyzing loss exposures, selecting and implementing risk management techniques, and monitoring and measuring the risk management program.
Here are four questions you need to answers to when determining the risks that high-net-worth individuals face:
1. What do they own?
It's important to have a full understanding of what is owned (including their unique features), the legal entity that owns the asset and insight into how that may change in the future. Here are some common ownership classes:
- Homes (primary, secondary, pools, trampolines etc.).
- Cars.
- Recreational vehicles.
- Boats/watercraft.
- Rental properties.
- Pets (dogs, horses, etc.).
- Co-ownership of property with others.
Asset ownership should be carefully assessed so properties owned in the name of an LLC, trust or other legal entity are afforded coverage under insurance policies that are secured.
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