If your client is worth $10m or even $25m how much liability insurance should they have? Should you be concerned? Our view is ABSOLUTELY!
Often times you acquire your client at the peak of their earning years, when the balance sheet needs structure to soar into the future. Asset allocation, Trusts, LLC’s and FLP’s are all part of organizing the future.
The best laid plans are only as good as the backstop, and for your client one of the most important backstops in an effort to be bullet proof is Liability insurance — specifically Umbrella/Excess Liability insurance.
There is no precise formula available for income or net worth that will easily give you a recommended level of protection. That being said, as your client ages it is essential that a periodic review of their exposures is performed, and adequate coverage is in place.
It is a common occurrence for us as agents to established or emerging wealth, to see new clients come to our office with a net worth of $25m, $5m of Liability insurance, and a $1,000 property deductible on a multimillion dollar home.
Take a minute to ask your client if they have ample Liability insurance, especially if there are trusts, FLP’s and LLC’s. Ask if they have had a professional agent review it recently to be certain.
Take a moment to ask, when was the last time you reviewed your liability exposures? Help make your client bullet proof with a little value added.