Everyone understands the importance of having insurance to reduce or eliminate exposure to financial liability. While health, life, homeowners, disability, and auto insurance may be all that is needed for many people, the same is not true for individuals and families with substantial assets. Insurance for high net worth people is a highly specialized area of insurance, which means that a personalized approach in planning is essential.
Why Do High Net Worth Individuals Need More Insurance?
Individuals with large assets and incomes have more exposure to liability because they typically own more, travel more, are employers, and are financially involved with many more people and businesses. People with second homes, expensive artwork, or membership on the board of a company are all cases where supplemental insurance is likely necessary.
Certain insurance companies routinely work with high net worth individuals and have proven expertise in the area.
What Types of Additional Insurance Do High Net Worth People Need?
Workers’ compensation insurance is recommended for families who have domestic help. Other possible types of insurance for high net worth people include:
- Personal excess liability insurance
- E&O insurance for directors and officers
- Collector car insurance
- Aviation insurance
- Watercraft and yacht insurance
- High-value homeowner’s insurance
- Vacation and rental property insurance
The supplementary insurance needs for high net worth individuals are important to consider. Arranging this coverage calls for additional planning and expertise.