Many wealthy individuals and families lack adequate liability insurance coverage, according to a report recently released by Ace Private Risk Services. In the study, they found that many families are poorly prepared for lawsuits and other liability losses. They have too little insurance coverage or in some cases, no coverage at all. Most people underestimate the cost of potential damages as well as failing to realize the affordability of effective protection.
Part of the problem with a lack of coverage seems to be the fact that many people often neglect to adjust their insurance coverage as their assets increase and risks multiply. For instance, you may not have thought about changing your coverage for your new artwork or jewelry. But in most cases, you need to add what is known as a rider for these types of assets. Additionally, you may have sold a business and have seen your assets increase substantially in a short period of time. You should adjust your insurance coverage accordingly.
The need for proper insurance coverage extends into your career as well. If you are a doctor, you might have taken out a policy when you first entered the field. As time has passed, you need better coverage and possibly custom solutions to fit your needs. The policy you bought 10 or 20 years ago is insufficient to protect you should the unfortunate happen.
It is a good idea to review your insurance coverage annually. While this might seem too frequent, a lot can change over a year’s time. Knowing you are adequately covered should the unfortunate happen will allow you to concentrate on more important matters, like your family and your hobbies.