Forget standard home insurance. Here’s how the wealthy protect their estates.
The Main House and the Missing Guest House
I thought my high-end homeowner’s policy covered my entire estate. Then a fire completely destroyed our guest house. I was shocked to learn that the policy had a very low limit for “other structures,” and the guest house was insured for a fraction of its replacement cost. The wealthy don’t buy a standard home policy. They use a specialist high-net-worth carrier that provides “guaranteed replacement cost” coverage for all structures on the property, from the main house to the pool cabana, ensuring their entire estate, not just the main building, is fully protected.
Stop chasing umbrella policies. Chase a comprehensive personal risk management plan instead.
The Umbrella Full of Holes
I thought my $10 million personal umbrella policy made me invincible. It was a false sense of security. After a lawsuit involving my work on a non-profit board, I discovered my umbrella had a specific exclusion for that activity. I learned that an umbrella is not a magic shield; it only covers what’s covered by the underlying policies. I stopped chasing a high number and started building a comprehensive risk management plan. This meant analyzing my specific life risks—board seats, hobbies, travel—and ensuring I had the right primary policies in place first.
The hidden truth about private client insurance groups that they won’t admit.
The Club with a High Cost of Entry
Private client insurance groups, the exclusive carriers for the wealthy, market themselves on superior service and coverage. The hidden truth they won’t admit is that their business model only works if they can avoid paying large claims. They do this by being incredibly selective in who they insure. They will non-renew a client after a single major claim to protect the profitability of their “club.” They aren’t loyal to you; they are loyal to their pristine loss ratios. Their great service comes at the price of being a fair-weather friend.
What nobody tells you about insuring fine art and collectibles.
The Agreed Value and the Argument You Avoid
What nobody tells you about insuring fine art is that a standard policy is worthless. If your painting is destroyed, a standard insurer will want to pay you what you paid for it, or its “actual cash value.” This is a recipe for a fight. A true fine arts policy is based on “agreed value.” This means you and the insurer agree on the exact value of each piece before the policy is written. If a loss occurs, there is no argument. They simply write you a check for the pre-agreed amount.
I spent 20 years as a private banker. Here’s what I learned about protecting wealth.
The Offense and the Defense
As a private banker, my job was to help wealthy clients grow their assets—to play financial offense. But I learned the most important part of wealth preservation isn’t offense; it’s defense. I saw more fortunes lost to a single, uninsured catastrophic event than to a bad investment. A major lawsuit, a fire at an uninsured vacation home, or a long-term disability can wipe out decades of careful investing. The wealthiest families understand this. They spend as much time and energy on their risk management and insurance strategy as they do on their investment strategy.
Unpopular opinion: Your trust and estate plan is not complete without a life insurance review.
The Estate Plan and the Illiquid Asset
You have a sophisticated trust and estate plan, designed by a top lawyer to minimize taxes and pass your assets to your heirs. Unpopular opinion: it’s incomplete. What happens when you pass away and your heirs need to pay the estate taxes? Your biggest assets—your business, your real estate—are illiquid. They can’t be sold quickly to pay the tax bill. A properly structured life insurance policy provides instant, tax-free liquidity to your estate for this exact purpose, preventing your heirs from being forced to sell valuable assets at a fire-sale price.
90% of financial advisors don’t understand this about high-net-worth underwriting.
The Net Worth and the Narrative
Most financial advisors think that getting high-limit insurance is just about your health and your financials. They don’t understand that for high-net-worth individuals, the underwriting process is also about your “narrative.” An underwriter will scrutinize your lifestyle. Do you race cars? Do you travel to high-risk countries? Do you have a controversial public profile? They are assessing your “moral hazard.” A good high-net-worth insurance broker knows how to proactively manage this narrative, presenting you to the underwriter as a responsible, well-managed risk, not just a balance sheet.
This simple annual security consultation transformed my personal safety.
The Lock and the Landscape
I had a good alarm system and thought my family was safe. On the advice of my insurer, I hired a professional security consultant for an annual review. It was eye-opening. He pointed out risks I had never considered. The overgrown shrubs next to my house provided perfect cover for a burglar. The type of locks on my doors could be easily bumped. His simple recommendations—better landscape lighting, improved locks, and a more unpredictable daily routine—transformed my understanding of personal security. It was the best money I ever spent on peace of mind.
You’re not struggling to get a high-limit policy because of your age. It’s because of your public profile.
The Celebrity and the Coverage Conundrum
As a public figure, I was frustrated by my inability to get a high-limit disability or life insurance policy, even though I was in perfect health. I thought it was ageism. The real reason was my public profile. Insurance underwriters see a public figure as a higher risk. There’s a greater chance of a lawsuit, a higher risk of targeted crime, and less privacy. I learned that I needed a specialist broker who knew how to navigate the complex world of underwriting for public figures, where your Q-score matters as much as your cholesterol score.
Stop buying trip-by-trip travel insurance. Buy an annual, worldwide policy instead.
The Trip and the Tiring Repetition
For years, every time my family took a trip, I would go through the tedious process of buying a separate travel insurance policy. It was a hassle, and the coverage was often mediocre. I finally switched to an annual, worldwide travel insurance policy from a specialist carrier. For one single, reasonable premium, my entire family is covered for every trip we take all year, from a weekend getaway to a month-long excursion. It includes high-limit medical evacuation, trip cancellation, and premium travel assistance. It’s a simpler, better, and often cheaper solution.
The uncomfortable truth about insuring custom and historic homes.
The Craftsman and the Cost
You own a beautiful, historic home filled with custom woodwork and irreplaceable details. The uncomfortable truth is that in the event of a major fire, your standard insurance company cannot and will not replicate it. They will offer you a check to rebuild with standard, modern materials from a big-box store. To truly protect a historic home, you need a specialized policy from a high-net-worth carrier. They have the expertise and the network of master craftsmen to recreate historic details, ensuring your unique home can actually be restored to its former glory.
Why everything you know about liability limits is backwards.
The Asset and the Attachment Point
Most people think they should have liability limits that are equal to their net worth. This is completely backwards. In a major lawsuit, a plaintiff’s attorney will see your assets as just the starting point. They will sue for your current assets plus a percentage of your future earnings for the rest of your life. Your liability limit shouldn’t just protect what you have now; it should protect what you will have in the future. It should be a number so large that it makes a potential plaintiff see the insurance company, not you, as the deep pocket.
I tried to insure my classic car collection with a standard auto policy. It was a disaster.
The Ferrari and the Ford Focus Policy
I owned a collection of classic cars. To save money, I insured them all on a standard auto policy, just like my daily driver. It was a disaster. After a garage fire, the insurer tried to value my vintage Ferrari based on the “actual cash value,” like it was a ten-year-old Ford Focus, ignoring its collectible value. I learned that classic cars need a specialized “agreed value” collector car policy. With this, the value of each car is agreed upon upfront, so in a loss, there is no argument about what it’s worth.
Hot take: “White glove” claims service is mostly marketing fluff.
The White Glove and the Red Pen
High-net-worth insurance carriers love to market their “white glove” claims service. They paint a picture of a compassionate, seamless experience. Here’s the hot take: it’s mostly marketing fluff. At the end of the day, the claims adjuster still works for the insurance company, and their job is to minimize the payout. While the process might be more polite, they are still scrutinizing every line of your claim with a red pen. True “white glove” service only comes when you hire your own advocate, like a public adjuster, to represent your interests.
Most high-net-worth individuals waste hours on insurance paperwork. Let a family office handle this instead.
The Paperwork and the Professional
As my assets grew, managing the sheer volume of insurance paperwork—renewals, appraisals, payments for multiple properties and policies—became a part-time job. I was constantly wasting time that could be better spent on my business or with my family. I finally consolidated all of it under the management of my multi-family office. They now handle the entire process, from negotiating with brokers to paying premiums. It has freed up countless hours of my time and ensures my risk management is handled with the same professional attention as my investments.
The 30-minute habit that replaced my fear of frivolous lawsuits.
The Asset and the Anonymity
My biggest fear was being a target for a frivolous lawsuit because of my visible wealth. I started a 30-minute annual habit that has replaced that fear. Once a year, I meet with my lawyer to review the titling of my major assets. We have systematically moved my primary residence, my vacation homes, and my investment accounts out of my personal name and into a series of anonymous LLCs and trusts. By making my assets harder to find, I have made myself a much less attractive target for opportunistic lawyers.
Your domestic employee problem isn’t caused by them. It’s your lack of employment practices liability coverage.
The Nanny and the Negligence Claim
We had to let our long-time nanny go. We thought we were being generous with our severance package. We were shocked when she sued us for wrongful termination. Our homeowner’s and umbrella policies provided no coverage. We learned that the moment you hire a domestic employee—a nanny, a housekeeper, a gardener—you become an employer, with all the same legal risks as a corporation. You need a specific Employment Practices Liability (EPLI) policy to protect you from claims of discrimination, harassment, or wrongful termination.
If you’re not using a specialized high-net-worth broker, you’re already losing to those who are.
The Broker and the Better Bargain
For years, I used a standard, local insurance agent. I thought I was getting a good deal. Then I met a friend who used a specialist private client insurance broker. I was stunned. Her broker had access to exclusive insurance carriers I had never heard of. Her policies had broader coverage, higher limits, and her premium was actually lower than mine for a similar level of assets. I realized I was losing a game I didn’t even know I was playing. The specialist brokers have access to a completely different, and better, market.
Stop glorifying brand name insurers. Start looking at their claims-paying ability.
The Brand and the Balance Sheet
Many people are drawn to the big, brand-name insurance companies they see advertised on TV. They feel a sense of security from the familiar logo. This is a mistake. A brand name is not a guarantee of financial strength. Instead of looking at their commercials, you should be looking at their financial ratings from firms like A.M. Best. These ratings are an independent assessment of the insurer’s claims-paying ability. A lesser-known company with a top-tier financial rating is a much safer bet than a famous brand with a weak balance sheet.
The real cost of a “free” insurance appraisal that nobody calculates.
The Appraisal and the Agenda
My high-net-worth insurer offered me a “free” appraisal of my home to ensure my coverage was adequate. It seemed like great service. The real cost was hidden. The appraiser, who was paid by the insurance company, had an agenda. He was looking for any reason to increase the insured value of my home, which in turn increased my annual premium. That “free” appraisal ended up costing me thousands in extra premiums over the years. A truly independent appraisal, one that you pay for yourself, is the only one you can trust.
What multi-millionaires do with their life insurance that the middle class doesn’t.
The Policy and the Portfolio
A middle-class person buys life insurance to replace their income for their family. A multi-millionaire does something completely different. They use life insurance as a strategic financial tool. They use it to create instant, tax-free liquidity to pay estate taxes, preventing the forced sale of their business or real estate. They use it as a vehicle for tax-sheltered investment growth. And they use it as a tool for complex charitable giving strategies. They don’t see it as a replacement for a paycheck; they see it as a unique and powerful asset class.
The myth of being “over-insured” is destroying your legacy.
The Limit and the Legacy
I once had a financial advisor tell me I was “over-insured” because my liability limits were so high. This is a dangerous myth. There is almost no such thing as being “over-insured” for liability. Can you really have too much protection for your family’s entire financial future? A single, catastrophic lawsuit can easily blow through a standard policy limit. Your legacy isn’t just the assets you pass on; it’s the security and peace of mind you provide. Being “over-insured” is how you guarantee that legacy survives a worst-case scenario.
I quit my mass-market insurer and my coverage for my assets doubled.
The Call Center and the Concierge
I had my home, auto, and umbrella policies with a big, mass-market insurer I had been with for 20 years. I was loyal. I finally decided to get a quote from a specialist private client group. The difference was shocking. For a similar premium, they offered me double the liability coverage, guaranteed replacement cost on my home, and coverage for risks my old policy never even contemplated. I quit the call-center world of the mass market and moved to the concierge world of private client insurance. It was the single best financial decision I ever made.
Controversial: Your favorite charity is holding you back from proper legacy planning.
The Charity and the Control
You love your favorite charity and plan to leave them a large bequest in your will. Here’s the controversial truth: this might be a mistake. A direct bequest gives up all control. A far more strategic approach is to use a tool like a Donor-Advised Fund (DAF) or a private foundation. You can fund it now, get the tax deduction, and let the assets grow tax-free. This allows you to maintain control over your giving for years, involve your children in philanthropy, and create a lasting family legacy, rather than just writing one final check.
95% of online advice about insuring luxury assets is wrong. Here’s why.
The Blog Post and the Billionaire’s Problem
Online articles on “how to insure your valuables” are written for people with a nice watch, not for people with a serious collection of them. They give generic advice that is dangerously wrong for a high-net-worth individual. They don’t understand the complexities of “agreed value” coverage, the need for specialized carriers, or the massive liability risks you face. The advice is written for a mass-market audience. The risks of the truly wealthy are so unique that generic online advice is not just useless; it’s a liability in itself.
One small change to our homeowner’s policy eliminated a major liability exposure.
The Trampoline and the Termination Notice
My kids begged me for a trampoline. I thought it was harmless fun. Then I got a letter from our homeowner’s insurance company. They had done a satellite image review of our property and saw the trampoline. The letter was blunt: get rid of the trampoline, or we will cancel your policy. It turns out that trampolines are what the industry calls an “attractive nuisance,” and they are the source of so many catastrophic injury claims that most standard insurers will not cover a home that has one. That one toy created a massive, uninsurable liability.
The truth about Kidnap & Ransom insurance that security consultants profit from hiding.
The Ransom and the Response Team
People think Kidnap & Ransom (K&R) insurance is just a policy that pays a ransom. The truth is, that’s the least important part. When you have a K&R policy, the first thing that happens when there’s an incident is that the insurer deploys a team of elite security consultants to your location. These are former intelligence officers and special forces operators. Their job is to manage the crisis, negotiate with the captors, and get your family member back safely. You’re not just buying a check; you’re buying an instant, world-class crisis response team.
Stop letting your financial advisor place your life insurance. It’s killing your returns.
The Advisor and the Adverse Selection
Your financial advisor is an expert in investments, not insurance. When they sell you a life insurance policy, they are often just selling you a product from a company they have a cozy relationship with. They are not scouring the entire market to find the best possible policy for your unique situation. To get the most competitive life insurance, you need to use an independent broker who specializes only in insurance. They can create a bidding war for your policy among dozens of carriers, ensuring you get the best terms and pricing, not just the one that’s most convenient for your advisor.
Replace your jumble of policies with a consolidated portfolio statement. Thank me later.
The Pile of Paper and the Single Page of Clarity
I had insurance policies for everything: three homes, four cars, a boat, my art collection, and a massive umbrella. The paperwork was a nightmare. My broker replaced that jumble with a simple, one-page “personal risk portfolio” statement. It summarizes every policy, every limit, and every premium on a single sheet of paper. We review it quarterly. It has transformed my understanding of my own risk management program. It replaced a confusing pile of paper with a clear, actionable overview of my entire defensive strategy. Your future self will thank you.
The private aviation industry secret that could save you thousands on hull insurance.
The Hangar and the Hidden Discount
The biggest cost of insuring a private jet is the “hull insurance,” which covers the physical aircraft itself. The industry secret that can save you a fortune is your choice of pilot. If you can demonstrate to the underwriter that you employ a highly experienced, professional pilot who attends annual simulator training for your specific aircraft model, the insurer will see you as a much lower risk. That pilot’s pristine record and commitment to training can earn you a discount of up to 25% on your hull premium, saving you tens of thousands of dollars a year.
Why your traditional homeowner’s policy fails in high-risk coastal areas.
The Hurricane and the Home That Wasn’t Covered
I owned a beautiful home in a coastal, hurricane-prone area. I had a standard homeowner’s policy from a big national carrier. I thought I was covered. After a major hurricane, I learned my policy was nearly worthless. It had a massive, separate “named storm” deductible that was equal to 5% of my home’s value. It also completely excluded damage from flood or storm surge. To be properly insured in a high-risk area, you need a specialized program that combines a primary policy, a separate flood policy, and an “excess flood” policy.
I ignored my advisor’s advice on long-term care insurance for years. It cost my family a fortune.
The Care and the Catastrophic Cost
My financial advisor always urged me to buy a long-term care insurance policy. I always ignored him. I was wealthy, and I figured I could just “self-insure” the cost of care if I ever needed it. Then I had a stroke and required years of 24/7, in-home professional care. The cost was astronomical, far more than I ever imagined. It drained a significant portion of the assets I had planned to leave to my children. I learned that long-term care is not a medical expense; it’s a catastrophic wealth-depletion event.
Let’s be honest: Your “personal umbrella” policy has more holes than Swiss cheese.
The Umbrella and the Uncovered Events
You bought a $5 million personal umbrella policy and you feel completely safe. Let’s be honest: that policy is probably full of holes. A standard umbrella policy often has specific exclusions for things like owning certain breeds of dogs, having a swimming pool with a diving board, or your activities on a non-profit board. An umbrella only covers what’s covered by your underlying policies. It’s not a magical shield. A true high-net-worth policy from a specialist carrier is designed to fill those holes, not just sit on top of them.
87% of wealthy families get insuring their domestic staff wrong. Don’t be one of them.
The Butler and the Back Injury
We employed a full-time housekeeper and a gardener. We paid them well and thought we were being good employers. We were getting it completely wrong. We didn’t have a workers’ compensation policy for them. When our gardener injured his back on our property, he couldn’t work for six months. We were on the hook for his medical bills and lost wages. We learned that the moment you have domestic staff, you are an employer, and you need a proper workers’ compensation policy, just like any other business.
This weird habit of insuring based on replacement cost, not market value, outperforms everything else.
The Market vs. The Mandate to Rebuild
My historic home had a market value of $2 million. But because of its unique construction, the actual cost to rebuild it to the same standard would be closer to $4 million. I have a weird habit: I insure my home for its full replacement cost, not its market value. After a major fire, this is a lifesaver. It means my policy will give me enough money to actually rebuild my home exactly as it was, not just a check for what it might have sold for. It’s a critical distinction for any unique or custom property.
The real reason you can’t get a $20 million life insurance policy (hint: it’s not your health).
The Justification and the Eight-Figure Policy
You are in perfect health and have a high net worth, but you’re struggling to get approved for a very large, $20 million life insurance policy. The real reason isn’t your health; it’s your “financial justification.” An insurance company will not issue a massive policy without a clear, documented reason for the coverage. You need to provide the underwriter with a professional report from your accountant or estate planning attorney that shows exactly why you need that specific amount—for estate tax liquidity, a business succession plan, or a major charitable gift.
Ditch your standard flood insurance. Use a private market flood policy instead.
The Flood and the Federal Failure
My home was in a flood zone, so I had a standard flood insurance policy from the National Flood Insurance Program (NFIP). It was a disaster. The policy had very low limits on the building, and even lower limits on the contents. It provided no coverage for my finished basement or for my living expenses while the house was being repaired. I ditched the federal program and bought a policy from a private flood insurance carrier. It provided much higher limits, replacement cost coverage, and loss of use coverage, for a similar premium.
Stop pretending your auto policy covers you on a racetrack. Try track day insurance.
The Race and the Ruined Engine
I love taking my high-performance sports car to amateur “track days” at a local racetrack. I thought that since it wasn’t a real race, my standard auto insurance would cover me if I crashed. I was wrong. Almost every single personal auto policy has an absolute exclusion for any damage that occurs on a surface being used for “racing, speed contests, or exhibitions.” To be covered, you need to buy a separate, specialized “track day” insurance policy for each event. It’s the only way to protect your car from your high-speed hobby.
The 4-word phrase that changed how I think about asset protection.
Make yourself a hard target.
My security consultant told me something that changed my entire approach to protecting my family and my assets. He said our goal was to “make yourself a hard target.” This doesn’t mean building a fortress. It means adding layers of visible and invisible security that would make a potential criminal or litigator decide that you are simply too much trouble to be worth the effort. It’s about being a less attractive, more difficult target than your neighbor. This simple, proactive mindset has guided every security and legal decision I’ve made since.
What the yacht insurance industry doesn’t want you to know about named storm deductibles.
The Storm and the Staggering Deductible
I insured my yacht with a standard marine policy. I thought my deductible was a simple $10,000. What the industry doesn’t want you to know is that most policies have a separate, and much larger, “named storm deductible.” When a hurricane damaged my boat, I was horrified to learn my deductible for that specific event was not $10,000, but 10% of the boat’s total insured value—a staggering six-figure sum that I had to pay out-of-pocket before the insurance paid a dime.
I was today years old when I learned about “cash-out” life insurance settlements.
The Policy and the Payout
My parents had a large life insurance policy that they no longer needed, and they were tired of paying the high annual premiums. They were going to just let it lapse. I was today years old when I learned about “life settlements.” This is a regulated process where you can sell your unwanted life insurance policy to an institutional investor for an immediate cash payment. Instead of getting nothing from letting the policy lapse, they received a significant lump sum. It’s a little-known but powerful option for monetizing an unneeded asset.
Normalize saying no to invasive underwriting questions.
The Question and the Quiet Refusal
During a high-limit disability insurance application, the underwriter started asking for copies of my personal diaries and for details about conversations with my therapist that felt incredibly invasive and irrelevant. I learned to normalize saying “no.” I had my broker go back to the underwriter and politely state that while I was happy to provide all relevant medical information, some questions were an invasion of my privacy and I would not be answering them. Often, the underwriter will back down and accept that they have overstepped their bounds.
Plot twist: Your biggest financial risk isn’t the market. It’s a lawsuit.
The Portfolio and the Plaintiff
I spent years with a team of financial advisors, meticulously managing my investment portfolio to protect it from market risk. I thought that was my biggest threat. The plot twist came when my teenage son was involved in a serious car accident, and we were hit with a multi-million dollar personal injury lawsuit. I suddenly realized that all my careful investment planning meant nothing. My biggest financial risk wasn’t a dip in the S&P 500; it was a single, catastrophic liability event that could wipe out my entire portfolio overnight.
The policy endorsement for “reputational harm” everyone ignores that gives me peace of mind.
The Headline and the Harm
As a prominent businessperson, my reputation is one of my most valuable assets. After a competitor started a vicious, false rumor about me online, my business suffered. The one thing that gave me peace of mind was a little-known endorsement on my personal liability policy for “reputational harm.” This coverage paid for a top-tier public relations firm to help me manage the crisis, combat the false narrative, and restore my public standing. It’s an endorsement everyone ignores, but for a public figure, it’s essential.
Stop optimizing for the lowest premium. Optimize for the highest liability limit.
The Premium vs. The Protection
For years, I treated my insurance like a commodity, always asking my broker to find me the lowest possible premium. This was a massive mistake. A low premium is often a sign of a weak policy with low limits. I changed my entire philosophy. Now, my primary goal is to get the highest possible liability limits I can find, often well over $100 million. A lawsuit can be for any amount. I no longer optimize for saving a few thousand on the premium; I optimize for the peace of mind that comes from knowing my family is protected by a massive wall of coverage.
The brutal truth about why your loyalty to one insurer isn’t getting you better coverage.
The Loyalty and the Laziness
I was a loyal customer of the same insurance company for 25 years. I thought this loyalty meant they would take care of me. The brutal truth is that my loyalty had bred complacency. They hadn’t proactively offered me new coverages in years, and my rates had slowly crept up. When I finally decided to have an independent broker market my account, a competing firm offered me a vastly superior policy for a lower premium. I learned that in insurance, loyalty is often a one-way street. You have to force them to compete for your business.
Throw away your standard insurance application. It’s making you worse at disclosing your risks.
The Application and the Narrative
A standard insurance application is just a collection of boxes to check. It’s a terrible way to communicate your unique risk profile. I threw it away. Now, when I apply for insurance, my broker submits a full, narrative-driven underwriting submission. It’s a professional presentation that tells the story of our family, our assets, and, most importantly, our robust risk management practices. It allows us to frame our own story for the underwriter, rather than letting them make assumptions based on a generic, impersonal form.
The 60-second test that reveals if your broker is a true private client specialist.
The Question That Qualifies the Broker
To find out if your insurance broker is a true private client specialist or just a generalist, try this 60-second test. Ask them this simple question: “Can you please explain the key differences in the policy forms between a standard mass-market umbrella policy and the excess liability policy from a carrier like Chubb or AIG?” A true specialist will instantly be able to discuss the nuances of things like “defense outside the limit,” “uninsured motorist” coverage, and the broader definition of “bodily injury.” A generalist will stumble.
Why everyone is wrong about the need for excess liability coverage.
The Excess and the Unexpected
Most people think that a standard $1 million or $5 million umbrella policy is more than enough coverage. They are wrong. They are thinking about predictable accidents. They aren’t thinking about the unexpected, “black swan” events. What if you are held responsible for a boating accident that involves multiple serious injuries? What if a guest at your home has an accident that leaves them permanently disabled? The liability for these events can easily reach eight figures. Excess liability coverage isn’t for the accidents you expect; it’s for the ones you can’t even imagine.
Stop asking “how much is it?”. Ask “what are my uninsured exposures?” instead.
The Price vs. The Protection Gap
When I used to meet with my insurance agent, my first question was always, “How much is my premium this year?” I was focused on the cost. I now start the meeting with a completely different question. I ask my advisor, “Based on my current life and assets, what are my single biggest uninsured exposures?” This question shifts the focus from price to strategy. It forces us to think like risk managers, identifying the gaps in my protection first. The premium is just a detail; the uninsured exposure is the real threat.
The habit of maintaining a personal asset inventory that I wish I’d started a decade ago.
The Inventory and the Insight
I started a habit that I wish I had begun the day I earned my first significant bonus. Once a year, I update a simple, secure spreadsheet that acts as a personal asset inventory. It lists every major asset I own—real estate, investment accounts, art, cars—along with its location, ownership structure, and current value. This simple document is the foundation of my entire financial life. It gives me incredible clarity, it makes my conversations with my lawyers and accountants vastly more efficient, and it would be an invaluable roadmap for my family if something were to happen to me.
Here’s why standard insurance advice is terrible for professional athletes.
The Athlete and the Asset
Standard financial advice for a high earner is to get a good disability insurance policy. For a professional athlete, this is terrible advice. Their biggest asset is their body. A standard disability policy has numerous exclusions for injuries related to professional sports. An athlete needs a highly specialized “loss of value” or “permanent total disability” policy, often from a carrier like Lloyd’s of London. It’s designed to pay out a massive, lump sum if an injury ends their high-earning career. Generic advice fails to protect their unique, high-stakes asset.
I’ll say what everyone’s thinking: Your private banker is not an insurance expert.
The Banker and the Broker
Let’s just say what everyone in the wealth management world knows but is too polite to say out loud: your private banker is not an insurance expert. They are an expert in banking and investments. When they recommend an insurance solution, they are often just referring you to an internal partner or someone they play golf with. They are not a licensed, independent insurance professional who can scour the entire market for you. For your insurance needs, you need a dedicated, specialist insurance broker, not a banker who is moonlighting as one.
The skill of risk avoidance that matters more than a diversified portfolio.
The Avoidance and the Alpha
Financial advisors will spend all their time talking to you about the importance of a diversified investment portfolio. A far more important skill for wealth preservation is the skill of risk avoidance. The ability to identify and consciously avoid high-risk situations—from hiring a domestic employee without a background check, to serving on a non-profit board without D&O insurance, to not having adequate security at your home—will do more to protect your net worth than any asset allocation strategy ever could. The best claim is the one that never happens.
This counterintuitive action of gifting assets to a trust fixed my estate tax problem.
The Gift and the Growth
My accountant told me something that seemed counterintuitive. He told me to start giving away my money. By making annual gifts of my assets into a series of irrevocable trusts for my children, I was able to move millions of dollars out of my taxable estate. The assets, now owned by the trusts, were able to grow completely outside of my estate, free from any future estate tax. It felt strange to give away control, but that counterintuitive action of strategic gifting will end up saving my family a fortune in taxes.
Why your good intention of “simplifying” your insurance is actually making things worse.
The Simplicity and the Sacrifice of Coverage
In an effort to “simplify” my life, I decided to move all my insurance policies to one single, big-name company. It was a good intention with a bad result. To fit me into their simple, one-size-fits-all package, the big company had to use restrictive policy forms and low sub-limits that were completely inadequate for my unique assets. I learned that for a high-net-worth individual, a “simple” insurance solution is almost always an inferior one. True protection requires a more complex, tailored portfolio of specialized policies.
Quit using a standard homeowner’s policy for your vacation home. It’s not worth the risk.
The Second Home and the Second-Rate Policy
I owned a vacation home and I insured it with a standard homeowner’s policy from a mass-market carrier. It was a huge mistake. Because the home was not my primary residence, the policy had massive limitations. It had no coverage for theft if the home was unoccupied for more than 30 days, and it had very limited liability coverage. I learned that a vacation home, especially if it is ever rented out, needs its own, separate commercial-style policy that is designed for a property that is not occupied full-time.
The metric everyone tracks (net worth) that means absolutely nothing in a lawsuit.
The Net Worth and the Negative Verdict
In the world of wealth, everyone is obsessed with their net worth. It’s the ultimate scorecard. But I learned that in the face of a major liability lawsuit, that number is completely meaningless. A jury doesn’t care what your net worth was yesterday. They only care about the size of the verdict they award today. And that verdict can easily exceed your net worth, putting you into a negative financial position for the rest of your life. The only number that matters in a lawsuit is your liability limit.
Stop calling it a “vacation.” Call it a “temporary residence abroad with unique risks.”
The Trip and the Threat Assessment
When my family planned a two-month “vacation” to Europe, we thought about hotels and restaurants. My security advisor forced us to change our language. He said, “You are not on vacation. You are establishing a temporary residence abroad, and that comes with unique risks.” This shift in mindset was powerful. It forced us to think about things like local political stability, emergency medical evacuation plans, and our personal security profile in a foreign country. It transformed us from tourists into prepared, responsible international residents.
The decision I made to hire a public adjuster for a major fire loss that everyone said was crazy (but worked).
The Adjuster and the Advantage
After a major fire at my home, the insurance company assigned their own adjuster. My friends told me I was crazy to consider hiring my own “public adjuster.” They said it was an unnecessary expense. I did it anyway, and it was the best decision I made. The insurance company’s adjuster works for them. My public adjuster worked for me. He knew the policy inside and out, he meticulously documented every single aspect of my loss, and he negotiated with the insurer from a position of strength. He got me a final settlement that was nearly double their initial offer.
What I learned from being a defendant in a lawsuit that changed my entire financial plan.
The Defendant and the Defensive Strategy
Being named as a defendant in a major lawsuit was the most stressful and educational experience of my life. It wasn’t just about the financial risk; it was the emotional toll and the massive distraction from my business and my family. The experience completely changed my financial plan. I now prioritize asset protection above all else. My goal is no longer just to grow my wealth, but to structure it in such a way—using trusts, LLCs, and high-limit insurance—that I become the least attractive possible target for any future litigation.
The common mistake of underinsuring personal collections that’s costing people their passions.
The Collection and the Coverage Gap
So many of my wealthy friends have passionate interests that have turned into valuable collections—watches, wine, art, cars. The most common mistake they make is failing to get these collections professionally appraised and properly insured. They still think of them as a “hobby.” They don’t realize they are sitting on a major, six or seven-figure asset that is completely unprotected by their standard homeowner’s policy. A single fire or theft can wipe out not just their passion, but a significant chunk of their net worth.
PSA: Universal life insurance illustrations are a scam. Here’s proof.
The Illustration and the Illusion
Here’s a public service announcement: the illustrations that insurance agents use to sell Universal Life insurance policies are often a scam. They will show you a projection where the policy’s cash value grows beautifully over time based on an optimistic, but non-guaranteed, interest rate. The proof is in the fine print. The actual guaranteed interest rate is often close to zero. When interest rates drop, your policy can implode, requiring you to pay much higher premiums to keep it from lapsing. The illustration is a marketing fantasy, not a contractual promise.
The skill of proactive risk management that the wealthy should teach their children but don’t.
The Inheritance and the Ignorance
Wealthy families are great at teaching their children about investing and philanthropy. The skill they almost never teach is proactive risk management. They don’t teach their kids about the importance of liability insurance, the risks of serving on a non-profit board, or the necessity of a pre-nuptial agreement. This leaves the next generation as a vulnerable target, with a great portfolio but no defensive strategy. The ability to protect wealth is just as important as the ability to create it, and it’s the biggest missing piece in most legacy planning.
This 5-minute action of reviewing your security protocols beats relying on an alarm system every time.
The Alarm and the Action Plan
My home has a state-of-the-art alarm system. But an alarm only tells you that something bad is already happening. I learned from a security expert that a 5-minute review of my family’s security protocols is far more valuable. Do we always set the alarm, even for a short trip? Are the doors always locked? Do we have a plan for what to do in a home invasion? Is our travel schedule posted on social media? Focusing on the human element—our actions and our habits—is a far more effective way to prevent a security incident than just relying on technology.
Why that “exclusive” high-net-worth insurer is actually doing it wrong for unique properties.
The “Exclusive” and the Exclusion
I insured my unique, architecturally significant home with an “exclusive” high-net-worth insurance carrier. I thought they understood unique properties. I was wrong. After a loss, I found their policy was still based on standard construction methods. They didn’t have the expertise or the flexibility to properly handle the claim for my home’s custom-milled woodwork and imported stone. I learned that some “exclusive” carriers are just selling a standard policy with a high price tag. A true specialist has claims adjusters who are experts in custom construction, not just in writing checks.
Stop waiting for a market crash to review your life insurance. Start with a policy audit.
The Audit and the Opportunity
Most people only think about their life insurance when they buy it, and then they file it away. Stop waiting for a major life event or a market crash to look at it again. You should conduct a formal “policy audit” with a specialist every few years. Why? Because the products have improved, your health may have changed, and your needs are different. A policy audit can often uncover opportunities to get more coverage for a lower premium, or to restructure a policy to be more tax-efficient. It’s a proactive check-up for a critical asset.
The private security firm I use that most people have never heard of.
The Firm and the Fortress
When people think of private security, they think of bodyguards. The firm I use, which most people have never heard of, does something completely different. They are a risk intelligence and security consulting firm. They don’t provide muscle; they provide information. They do advance travel assessments, they conduct deep background checks on my staff, and they have designed the unseen electronic and physical security protocols for my home. They are the invisible fortress that allows my family to live a normal life, safely.
Your liability problem exists because you believe your LLC protects your personal assets.
The LLC and the Limits of Its Protection
You’ve put your business and your real estate holdings into a series of LLCs. You believe this has made your personal assets untouchable. Your liability problem exists because this belief is only partially true. If you are personally sued for a non-business activity—like a major car accident—the plaintiff’s lawyer can still go after your ownership stake in those LLCs. The LLC protects your personal assets from a business lawsuit, but it doesn’t protect the business assets from a personal lawsuit. You still need a massive personal umbrella policy as your primary shield.
Delete that “digital vault” app. Your security will improve instantly.
The Vault and the Vulnerability
I used a popular “digital vault” app on my phone to store all my important documents—passports, insurance policies, and account numbers. It was convenient. It was also a single point of catastrophic failure. If my phone was hacked or my master password was compromised, my entire financial life would be exposed. I deleted the app. I now keep my most sensitive documents in a secure, encrypted offline storage device, and I use a professional password manager with a unique, complex password for every single account. Convenience is the enemy of real security.
The advice on premium financing I give that makes accountants uncomfortable (but works).
The Loan and the Leverage
When I tell my accountant I am going to finance the premiums for a large life insurance policy, they get uncomfortable. It seems like taking on unnecessary debt. But for a high-net-worth individual, it’s a powerful strategy. By borrowing the premium from a bank at a low interest rate, I can keep my own capital invested in my business or the market, where it can earn a much higher return. I am using leverage to acquire a valuable asset (the death benefit) without having to liquidate my own high-performing investments. It’s a sophisticated tool that works.
Why the common fear of audits is irrational and the real fear of an uninsured loss is ignored.
The Audit and the Accident
Wealthy individuals often have an irrational fear of being audited by the IRS. They spend a fortune on accountants to minimize this risk. The real, rational fear that they should have—but often ignore—is the fear of a massive, uninsured liability loss from a lawsuit. An IRS audit might be stressful and cost you some money in back taxes and penalties. A multi-million dollar lawsuit can wipe out your entire net worth. Fearing the manageable risk of an audit while ignoring the catastrophic risk of a lawsuit is a classic case of misplaced priorities.
I tried to insure my wine collection under my homeowner’s policy so you don’t have to. Here’s what happened.
The Wine and the Worthless Rider
I had a valuable wine collection and I added a “rider” to my homeowner’s policy to cover it. I thought I was protected. A malfunction in my wine cellar’s cooling unit caused the temperature to spike, ruining the entire collection. My homeowner’s insurer denied the claim. The rider covered for fire and theft, but it specifically excluded loss due to “changes in temperature or spoilage.” I learned I needed a standalone, specialist fine arts policy that was specifically designed for wine, with coverage for spoilage and equipment breakdown.
The question about “admitted vs. non-admitted” carriers that instantly reveals if a broker knows their stuff.
The Question That Separates the Pros
When I interview a new insurance broker, I ask them this simple question: “Can you please explain the pros and cons of using a non-admitted insurance carrier for my excess liability coverage?” A true private client specialist will be able to immediately discuss the flexibility and manuscript policy forms of the non-admitted market, as well as the lack of state guarantee fund protection. A standard agent will likely have no idea what you’re talking about. This one question instantly reveals if they are a real expert or just a salesperson.
This old-school method of using a specialized broker beats every modern insurtech platform.
The Broker and the Bot
The new “insurtech” platforms for high-net-worth individuals are slick and modern. But they are just bots. An algorithm cannot understand the unique complexities of your life, your assets, and your family. I will take an old-school, highly experienced, specialized private client broker over a slick app every single day. A bot can give you a quote. A specialist broker can provide wisdom, advice, advocacy, and a long-term relationship. For protecting significant wealth, you need a human expert, not a clever algorithm.
Stop romanticizing “insurtech” for the wealthy. It’s actually just a data collection tool.
The App and the Aggregation of Your Data
These new, exclusive “insurtech” apps for the wealthy are being romanticized as a modern way to manage risk. The truth is, they are often just sophisticated data collection tools. You willingly upload your entire financial life—your assets, your insurance, your legal documents—into their platform. They are aggregating this incredibly valuable data for their own purposes, whether it’s for marketing or for selling anonymized data sets. You are not just a customer; you are the product.
The principle of “utmost good faith” that guides every high-value claim I’ve been involved in.
The Good Faith and the Good Result
In the world of high-net-worth insurance, a legal principle called “utmost good faith” governs everything. It means that both the insured and the insurer have a duty to be completely honest and transparent with each other. In a major claim, I have always found that by proactively providing the insurer with all the information they need, even information that might not be favorable to me, I am demonstrating my good faith. This builds trust and almost always leads to a faster, fairer, and less contentious settlement process.
Why your premium is vanity and your “sleep-at-night” factor is sanity.
The Premium vs. The Peace of Mind
High-net-worth individuals can sometimes get caught up in negotiating their insurance premiums, trying to save a few thousand dollars. This is a vanity metric. The number that represents sanity is your “sleep-at-night” factor. Do you have enough liability coverage that you can sleep soundly, knowing that one catastrophic lawsuit will not destroy your family’s future? Paying a slightly higher premium for a much higher limit that gives you complete peace of mind is the best bargain you will ever find.
Forget work-life balance. Aim for asset protection and peace of mind instead.
The Balance and the Bedrock
The popular culture is obsessed with the concept of “work-life balance.” For a person with significant assets, a more important goal is “asset protection and peace of mind.” You can have a perfect work-life balance, but if you are living with the constant, low-grade fear of a lawsuit or a major loss, you are not truly living well. Building a strong bedrock of legal and insurance protections that guards your assets and lets you live without financial fear is the true foundation upon which any kind of meaningful “balance” can be built.
The realization that made me quit a mass-market insurance company forever.
The Call Center and the Catastrophe
I was with a big, mass-market insurance company for 20 years. After a major claim, I had a realization. I was dealing with a call center employee who was reading from a script. They had no authority, no empathy, and no understanding of my situation. I realized that in my moment of crisis, I was just a claim number to a giant, impersonal bureaucracy. I quit them forever and moved to a specialist private client insurer where I have a dedicated team that knows my name. The difference is profound.
What the newly rich do with insurance that old money never does.
The Flash and the Foundation
The “newly rich” often make a classic mistake. They spend their money on the visible trappings of wealth—the fancy car, the big watch, the designer clothes. They often neglect the invisible foundation of wealth protection. “Old money” families, who have been preserving wealth for generations, do the opposite. They will spend a significant amount on their “defensive” team—their lawyers, their security consultants, and their insurance advisors—before they buy the new toy. They know that the foundation is more important than the façade.
The investment in a personal security consultant that everyone avoids that has the highest ROI.
The Consultant and the Confidence
Most wealthy families would never think of hiring a personal security consultant. It seems like something for celebrities or spies. But the investment has the highest possible ROI. A good consultant doesn’t just talk about bodyguards. They teach you about situational awareness, they help you secure your digital life, and they design your home’s security to be effective but discreet. They give you the tools and the confidence to move through the world safely and without fear. The ROI isn’t financial; it’s in the quality of your life.
Stop saying “I’m covered.” Say “I have a scheduled personal property endorsement for that.”
The Vague vs. The Verified
When a friend asks me if a valuable item is insured, I never just say “I’m covered.” That’s a vague and meaningless statement. I’ve learned to be more precise. I say, “Yes, I have a scheduled personal property endorsement for that item with an agreed value of $X on my fine arts policy.” This language does two things. It demonstrates that I am a sophisticated manager of my own risks. And it forces me to actually know, and not just assume, the specific way that my assets are protected.
The truth about underwriting high-limit disability insurance I couldn’t say as an underwriter.
The Unearned Income and the Uninsurable
I used to be an underwriter for a disability insurance carrier. Here’s a truth I couldn’t say out loud. When we got an application from a high-net-worth individual who had a massive amount of “unearned” income from investments, we would often decline them for a high-limit policy. Why? Because if they can replace most of their lifestyle from their investment income, they have very little financial incentive to return to work after a disability. This creates a massive “moral hazard” that makes them an almost uninsurable risk for a high-limit policy.
This tiny detail in the “care, custody, or control” exclusion separates amateur brokers from professionals.
The Clause and the Clarification
I had a major liability policy. My broker, a true professional, pointed out a tiny detail in the “care, custody, or control” exclusion. The standard exclusion would have prevented coverage if I damaged a valuable painting I had borrowed from a friend. But my broker had negotiated a small change in the wording that made an exception for “borrowed, non-owned property.” This tiny clarification, which an amateur broker would have never noticed, meant that I was protected for a very common high-net-worth risk.
Why a high deductible is a trap for people with multiple homes.
The Deductible and the Double Whammy
To save money, I chose a high, $25,000 deductible on my homeowner’s insurance policy. I could afford it. But I have multiple homes. What I didn’t realize is that a single, widespread event like a hurricane or a wildfire could damage all of my properties at once. A high deductible isn’t a per-event deductible; it’s a per-location deductible. I could be faced with paying that $25,000 deductible three or four times over for the same single storm. For people with multiple properties, a high deductible is a dangerous trap.
Replace your jumble of insurance documents with a simple family office summary. You’re welcome.
The Summary and the Sanity
My family’s insurance program was a chaotic jumble of a dozen different policies, renewal dates, and premium notices. It was impossible to keep track of. My family office replaced that chaos with a simple, elegant solution: a one-page “master summary.” It lists every policy, the carrier, the limits, the premium, and the renewal date in a single, clean document. We review it quarterly. It has brought complete clarity and sanity to our risk management. It’s the most valuable single piece of paper in our financial lives.
The skill of negotiating claims settlements that’s 10x more valuable than a low premium.
The Negotiation and the Net Result
Many wealthy people pride themselves on their ability to negotiate a low premium on their insurance. A far more valuable, and often overlooked, skill is the skill of negotiating a claims settlement. After a major loss, the insurance company’s first offer is just that—an offer. The ability to professionally document your loss, argue for the broadest interpretation of the policy language, and negotiate a fair settlement from a position of strength can result in a final payout that is hundreds of thousands of dollars higher. That skill is worth far more than any small discount on the premium.
Stop treating your insurance like an expense. Treat it like an asset class instead.
The Expense vs. The Endowment
Most people see their insurance premiums as a painful expense. I’ve learned to see them differently. I treat my insurance portfolio as a distinct asset class. It is the “defensive” portion of my overall financial picture. Just like I allocate capital to stocks and bonds, I allocate capital to my insurance program. In return for that capital, I get a guaranteed return in the form of risk transfer and peace of mind. It’s not a bill to be paid; it’s a non-correlated, high-performing asset that protects all my other assets.
The experiment I ran with a higher deductible that proved my risk tolerance wrong.
The Tolerance and the Test
I always thought I had a very high tolerance for risk. To save money on my premiums, I chose the highest possible deductibles on all my policies. I ran an experiment. I calculated the total amount of those deductibles and wrote that number on a sticky note. I put it on my bathroom mirror and looked at it every day for a week, imagining I had to write a check for that amount today. The experiment proved my perception was wrong. I did not have the stomach for that level of loss. I immediately called my broker and lowered my deductibles.
Why your old umbrella policy worked before but doesn’t in today’s social media-driven world.
The Tweet and the Tort
Your old umbrella liability policy was designed for a world of physical torts, like car accidents. It is not designed for the risks of today’s social media-driven world. What happens if your teenage child posts a defamatory comment about a classmate that goes viral, leading to a lawsuit for libel and emotional distress? Your old umbrella policy may have a specific exclusion for this. You need a modern policy that has a broad definition of “personal injury” that explicitly includes the risks of social media, cyberbullying, and online defamation.
The choice to use a Lloyd’s of London syndicate that everyone judges that actually makes sense for unique risks.
The Syndicate and the Solution
I needed to insure a very unique and difficult risk—a high-value asset that no standard insurance company would touch. My broker made a choice that my friends judged as “strange” and “complicated.” He took the risk to a specific syndicate at Lloyd’s of London. Lloyd’s is not an insurance company; it’s a marketplace of individual underwriters who specialize in covering risks that nobody else will. For a truly unique or complex risk, the expertise and flexibility of a Lloyd’s syndicate is often the only, and best, solution.
I stopped letting my wealth manager handle my insurance and a comprehensive review happened.
The Manager and the Missed Opportunity
For years, I let my wealth management firm handle my property and casualty insurance. It was convenient. It was also a mistake. They were not insurance experts, and they placed my policies with a single carrier they had a relationship with. I took control of the process and hired an independent, specialist insurance broker. The first thing he did was conduct a comprehensive review. He found massive gaps in my coverage and was able to find me a much better, more appropriate program on the open market. I had been sacrificing quality for convenience.
The concept of “adverse selection” that nobody with new wealth understands but changes everything.
The Selection and the Sucker’s Bet
“Adverse selection” is the insurance principle that says that the people who are most likely to have a claim are also the most likely to buy insurance. Insurance companies know this. When a person with “new money” suddenly tries to buy a massive amount of insurance after a health scare or a public scandal, the underwriters see a huge red flag. They see it as a sucker’s bet. This is why “old money” families build their insurance foundation slowly, over time, when they are healthy and boring. They are avoiding the appearance of adverse selection.
This unpopular opinion on charitable giving will trigger estate planners but it’s true.
The Gift and the Gotcha
Here’s an unpopular opinion that will trigger many estate planners. Giving a large, direct cash gift to a charity may not be the most effective way to give. A better, more leveraged approach is to use that same cash to purchase a life insurance policy and name the charity as the beneficiary. For the same out-of-pocket cost, you can create a much larger, tax-free death benefit for the charity years down the road. It turns a one-time gift into a lasting legacy, but many planners are more focused on the immediate tax deduction than the long-term impact.
Stop copying your neighbor’s liability limits. Do your own personal risk analysis instead.
The Neighbor and the Negligence
My neighbor told me he had a $5 million umbrella policy, so I called my agent and got the same thing. I was copying his answer without knowing the question. My neighbor didn’t have teenage drivers, he didn’t sit on any non-profit boards, and he didn’t own a boat. My risk profile was completely different from his. I learned that you must do your own, personalized risk analysis. Your liability limits should be based on your unique lifestyle, assets, and activities, not on what your neighbor is doing.
The mistake of ignoring uninsured/underinsured motorist coverage that I see everywhere that’s so easy to fix.
The Crash and the Coverage Chasm
The biggest liability mistake I see wealthy people make is ignoring their Uninsured/Underinsured Motorist (UM/UIM) coverage. They have a massive personal umbrella policy, but their underlying auto policy has low UM/UIM limits. If you or a family member is seriously injured by a driver who has no insurance, your own multi-million dollar umbrella will not pay a dime. The umbrella only covers your liability to others. You need to specifically purchase high-limit UM/UIM coverage to protect yourself from the negligence of others. It’s an easy and inexpensive fix.
Why this new “peer-to-peer” insurance isn’t innovative. It’s just a reciprocal exchange repackaged.
The “P2P” and the Policyholder’s Promise
A new “peer-to-peer” insurance company is marketing itself as a revolutionary way to get coverage. It’s not. It’s just a modern rebranding of a century-old structure called a “reciprocal exchange.” In this model, you are not just a customer; you are also a part-owner of the insurance company. You are insuring each other. If the company has a bad year with lots of claims, they have the right to send you a bill for an extra “assessment” to cover the losses. It’s not an innovation; it’s a different, and potentially riskier, way to share risk.
The rule of “full disclosure” I follow with my private client group (and why you should too).
The Disclosure and the Defense
My relationship with my private client insurance carrier is a partnership built on the principle of “utmost good faith.” I have a rule that I follow without exception: full disclosure. I proactively tell them about any new purchases, new risks, or changes in my lifestyle. Why? Because if I ever have a major claim, I want them to have no reason to suspect I hid something from them. My history of transparency becomes a powerful part of my defense. It shows I have always been an honest and responsible partner, which makes for a much smoother claims process.
Stop believing your trust protects you from everything. Believe in the power of a well-structured insurance portfolio instead.
The Trust and the Tort
You’ve spent a fortune creating a complex web of trusts to protect your assets. You feel legally invincible. But a trust cannot protect you from a lawsuit for your own personal negligence. If you cause a major car accident, the plaintiff’s lawyer will still come after you. While the trust may make it harder for them to collect on a judgment, it doesn’t stop the lawsuit from happening. A trust is a critical legal tool, but it is not a substitute for a massive, well-structured personal liability insurance portfolio as your first line of defense.