• Home
  • Get A Quote
  • Customer Service
  • Refer a Friend
  • About Us
  • Location Map
  • Employee Directory
  • Privacy Policy
  • Contact Us
 
CALL US AT 352.332.0180
Home
  • Home
  • Get A Quote
  • Customer Service
  • What We Offer
    • Auto Insurance
    • Business Insurance
    • Commercial Auto Insurance
    • Contractors Insurance
    • Home Insurance
    • Renters Insurance
    • Boat | Motorcycle | RV
  • Blog
  • Resources
    • Secure File Area
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • About Us
    • Location Map
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Auto Insurance PERSONAL AUTO
Auto Insurance COMMERCIAL AUTO
Homeowners Insurance HOME
Business Insurance BUSINESS
Toy Insurance TOYS
Contractors Insurance CONTRACTORS
Home > Blog > Why Wealthy Families Need More Insurance
FRIDAY, APRIL 26, 2019

Why Wealthy Families Need More Insurance

Why Wealthy Families Need More Insurance

Although many people assume America's wealthiest families have nothing to worry about, they do have to worry about being targets of significant liability lawsuits. The high unemployment rates and unsteady economy have contributed greatly to these realistic fears. Unfortunately, many wealthy families do not have ample protection against such lawsuits. They also underestimate the cost of potential damages and how affordable protection is in comparison with those damages.

A recent study performed by ACE Private Risk Services found that half of the people interviewed thought the worst lawsuit they could possibly face would be less than $5 million. However, the grim reality is that lawsuit awards for serious injuries are often much higher than that amount. The individuals interviewed in the study belonged to households with more than $5 million in assets. ACE's study sought to uncover the threat perceptions of these wealthy families. With the nation's discourse over wealth disparity, the findings show that rich families feel they are increasingly targeted for lawsuits. Approximately 80 percent of wealthy individuals feel their money puts them at a higher risk. More than 65 percent of the individuals interviewed felt that the nation's view of the wealthy has become more negative since 2008. In addition to this, almost 40 percent feel they are more likely to face lawsuits during the next several years.

Since some wealthy families underestimate all types of liabilities, they are more likely to carry insufficient insurance policies. This is true with homeowners coverage, auto insurance and several other types of coverage. More than 40 percent of the survey participants reported carrying under $5 million in umbrella liability coverage. In addition to this, more than 20 percent said they did not have an umbrella policy at all. For those who are not familiar with this type of insurance, it is a crucial component of personal coverage. In the event an incident consumes the maximum amount allowed by an individual policy, the umbrella policy provides extra coverage. How much additional coverage it provides depends on what type of policy is purchased. Wealthier individuals should have umbrella policies that are significant enough to protect their assets. Keep in mind that auto or homeowners policies rarely exceed $500,000 alone. There are several companies specializing in umbrella policies for wealthy families whose net worth is beyond $1 million. These companies offer policies covering between $1 million and $100 million. Premiums for such policies are higher than average, but choosing a larger deductible brings lower premium amounts.

Selecting a plan with a higher deductible and paying for small losses is a responsible choice. Wealthy families must understand where their lawsuit risks are coming from. The survey shows that more than 50 percent of these families have employees. Gardeners, housekeepers and nannies are all staff members who could become disgruntled enough to file a lawsuit. In many cases, the allegations may not even be true. Sexual harassment, wrongful employment practices, wrongful termination and discrimination are common allegations in such lawsuits. Wealthy individuals who serve as trustees of charitable organizations must also consider the organization's directors and officers coverage, which may not be significant enough for individual protection. Auto accidents, dog bites, character defamation and slander are also common lawsuit sources. The risks are evolving constantly, and it is crucial to be properly prepared. To determine if individual coverage needs changes or additions, discuss these options with an agent today. 

Thank you for visiting the Partners Insurance Agency blog. We hope you found our content helpful and informative.

Posted 3:00 PM

Tags: insurance, liability, wealth
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016

  • insurance(99)
  • homeowners insurance(44)
  • auto insurance(40)
  • business insurance(29)
  • home insurance(11)
  • boat insurance(8)
  • workers compensation(8)
  • insurance claims(8)
  • liability insurance(7)
  • flood insurance(6)
  • liability(5)
  • additional insured(5)
  • commercial liability insurance(4)
  • d&o insurance(4)
  • umbrella insurance(4)
  • hurricane preparedness(4)
  • commercial auto insurance(4)
  • renters insurance(4)
  • insurance discounts(4)
  • teen drivers(3)
  • vacation rental insurance(3)
  • business owners policy(3)
  • tria(3)
  • small business insurance(3)
  • insurance coverage(3)
  • water damage(3)
  • summer safety(3)
  • workplace safety(3)
  • commercial insurance(3)
  • commerical insurance(3)
  • covid-19(3)
  • uber(2)
  • non-owned auto insurance(2)
  • drunk driving(2)
  • employee fraud(2)
  • terrorism risk insurance(2)
  • business owners insurance(2)
  • insurance liability(2)
  • freezing pipes(2)
  • halloween safety(2)
  • auto accident scams(2)
  • holiday safety(2)
  • natural disasters(2)
  • contractors(2)
  • moving(2)
  • dog liability insurance(2)
  • forced-placed insurance(2)
  • claims process(2)
  • buisiness insurance(2)
  • general liability(2)

View Mobile Version
Facebook
Twitter
LinkedIn
Carriers
logo, company name
text, logo
Carriers
logo
icon
logo, company name
PIA

Resources

Home About Us Get a Quote Customer Service Contact Us
a drawing of a face

Contact Us

icon
  • 4040 W Newberry Road Suite 950
  • Gainesville, FL 32607
  • Office: 352.332.0180
  • Fax: 352.378.5820
© Copyright. All rights reserved.
Powered by Insurance Website Builder