4 Things to Keep in
Mind When Working
with Wealthy Clients
By Lisa Lindsay, Private Risk Management Association
In order to help high-net-worth cli- ents maximize their liability protec- tions, it’s important to understand
their lifestyles through the development
of a personal risk management strategy.
This discussion is a positive dialogue,
which includes defining goals and objectives, identifying and analyzing loss
exposures, selecting and implementing
risk management techniques, and monitoring and measuring the risk management program.
Here are four questions you need to
answer when determining the risks that
high-net-worth individuals face:
1. What do they own?
It’s important to have a full understand-
ing of what is owned (including their
unique features), the legal entity that
owns the asset and insight into how that
may change in the future. Here are some
common ownership classes:
Asset ownership should be carefully
assessed so properties owned in the name
afforded coverage under insurance policies that are secured.
2. What do they do?
Have a thorough understanding of the
household’s activities to identify liability
risk exposures. These include:
blogging, social media)
3. Who do they employ?
Understanding who your clients’ employees are, the terms of employment and the
management of the employees are key in
helping your clients manage the potential
risk associated with being an employer.
As a risk manager, you should have a
complete understanding of the following:
elder care, caretakers, etc.
versus independent contractor;
full-time versus part-time.
compensation insurance, disability
and references; job descriptions and
manuals; onboarding and employee
exit best practices.
4. What protections do they need?
your clients to discuss recommended so-
lutions to protect them from the financial
and emotional loss that could be incurred
if they are faced with a lawsuit.
Depending upon the risk exposures
identified, your recommendations should
include a mix of risk management tech-
niques. There will rarely be only one
risk management technique, such as the
purchase of insurance, to help your cli-
ents maximize their liability protections.
to implement risk mitigation actions in
conjunction with an insurance solution.
Here are a few examples of how a sound
personal risk management program pairs