Unique risks require unique insight into the best property and casualty insurance, where the complexity of lifestyle and significant assets present atypical challenges and opportunities for high-net-worth (HNW) clients. Whether they own multiple homes, aircraft and seacraft, jewelry and employ personal staff, HNW individuals require customized policies or services that will provide financial protection from a range of liabilities. Howard Insurance has a deep understanding of these unique risks and can deliver specialized products and services crafted to address them.
One Policy, One Premium, Zero Worry
Private client insurance is designed for affluent individuals and families who have more assets – either in quantity or value – that exceed the maximum coverage limit of standard insurance companies. While private client insurance offers comprehensive coverage with higher liability limits, it is also packaged differently from standard insurance coverages. Assets are typically insured together, meaning that just one insurer and one premium covers your homes, cars, personal liability, boats, collectibles, etc. This seamless coverage means, for example, that if liability limits are reached for an automobile, personal liability coverage takes over.
“Higher coverage limits and additional coverages are not the only benefits of private client insurance,” says Lisa Gelles, Executive Director, Private Client at Howard Insurance. “Much like most specialized, high-end offerings, opting for private client insurance means you will receive personalized service from a highly experienced broker who has in-depth knowledge of the risk market. That translates into a lot more control over the financial outcomes of your insurance decision than if you had chosen a mass-market carrier.”
Howard Insurance can provide a simple risk assessment to assess coverage gaps that may lead to unwanted financial exposure.
For HNW individuals, finding the right insurance coverage can be difficult because their needs fall outside the realm of the assets and liabilities that traditional coverages can address. This is where private client insurance can provide coverage while serving as a risk mitigation tool for a multitude of risks.
Personal Real Estate
Several homes and the risks that come with them can be fully protected with private client insurance. Consider the family with vacation property in an area subject to natural disasters such as hurricanes or wildfires. Having coverage for both the property and the surrounding real estate above any individual policy is critical. When it comes to home renovations and other construction projects, protection may be needed for damage to plumbing and appliances, flooding, fire, and personal injury. A single policy can provide peace of mind for all these risks and more.
In affluent households, the number of cars often outnumbers the number of drivers, so a policy that reflects the number of eligible drivers instead of the number of vehicles is a much better assessment of risk. Similarly, an antique car, a luxury boat or a private plane may have just enough insurance to render them operational. But what about additional coverage for crew members, fire at sea or damage to any valuable art or collectibles decorating the cabins? As an example, aviation policies may need to include hangar and private airstrip coverage or exclusions for those who operate and maintain the equipment.
High Value Collectibles
Jewelry, fine art, wine, handbags and other collectibles often require dedicated coverage as most homeowners’ policies typically cap the amount of coverage they provide. The unique nature of these items requires a policy that is flexible and assesses them based on true risk of loss, not just the highest price the market will bear. An effective evaluation of client’s risk must accurately reflect responsible behavior, too. Factors such as updated appraisals and security measures including well-protected home safes need to be considered. Added value also comes in the form of recovery and replacement services to help find stolen items or reproduce pieces that can’t be found.
Personal Employee Liability Coverage
Many HNW individuals employ domestic staff such as drivers, housekeepers and nannies, meaning they also require coverage to protect against injury to staff or wrongful employment allegations. Unfortunately, these employers are viewed as having ‘deep pockets’, making them attractive as defendants in liability lawsuits. Private client insurance not only provides liability coverage but also can provide crisis management services as a way to preserve the insured’s reputation.
Cybersecurity and Data Protection
According to a 2021 study by Chubb, about 10% of HNW respondents reported suffering cyber attacks while working at home during the pandemic, compared to three percent of respondents overall. The right coverage can help HNW individuals recover from a cyber-attack. Private client insurance not only focuses on the material costs of an attack, like breached data, but also on issues like the damage a high-profile individual might suffer to their reputation if an attack occurs. In addition, coverage can help recover stolen information in the case of identity theft.
Many affluent individuals hold board positions, including involvement with charitable organizations, and may not know if they are protected with personal liability coverage from those companies or charities. Even if they are covered, they probably do not know the policy’s limits or conditions. It is essential for anyone holding a position to understand and be adequately insured against any potential exposures.
We Are Experts in Private Client Insurance
At Howard Insurance, we understand the unique insurance needs of affluent individuals. When evaluating the need for private client insurance, we go beyond taking an asset inventory – from ensuring assets are titled correctly, to appraising related factors such as usage, location, storage, climate, and security. Our experienced team will identify coverage gaps and specific risks and help to customize a policy and deliver essential services.
For over 75 years, Howard Insurance has helped each of our select clients secure their assets, their ambitions, their businesses and, ultimately, their legacies. Leaders in private insurance advisory and risk management, we pair deep expertise with sincere attention to our clients’ needs to create unique solutions that benefit them best.