{"id":2453,"date":"2018-07-30T16:32:21","date_gmt":"2018-07-30T16:32:21","guid":{"rendered":"http:\/\/estrategist.com\/members\/?p=2453"},"modified":"2018-08-01T16:14:42","modified_gmt":"2018-08-01T16:14:42","slug":"environmental-exposures-impacting-high-net-worth-insureds","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/environmental-exposures-impacting-high-net-worth-insureds\/","title":{"rendered":"Environmental Exposures Impacting High Net Worth Insureds"},"content":{"rendered":"

In this High Net Worth (HNW) competitive environmental intelligence, we examine the article \u201c7 Crucial Risks Facing High Net Worth Families\u201d and have broadened it by adding the environmental exposures (bold<\/strong> below) that are part of the 7 crucial risks facing HNW insureds.<\/p>\n

As the article highlights:\u00a0\u00a0High net worth (HNW) individuals and families face many risks due to their complex lifestyles. The wealth they have accumulated makes their property and casualty exposures more complex than the average consumer, and their risks oftentimes rival those of a business in scope.<\/em><\/p>\n

The frequency and complexity of the risk exposures faced by HNW families and individuals make it necessary to adopt proactive risk prevention strategies, as well as the purchase of insurance protection to make them whole should they suffer a loss.<\/em><\/p>\n

The ERMI, Patent Pending, HNW Pollution Insurance Program is designed to protect your HNW insureds from the environmental exposures impacting their resources while better protecting your E&O exposure.<\/p>\n

If you are not assisting your HNW insureds on managing and transferring their environmental exposures, the only coverage they may have when they experience an environmental liability is your E&O insurance.<\/p>\n

7 Crucial Risks Facing High Net Worth Families<\/strong><\/p>\n

From cyber risks to global travel, high net worth families have a host of risks to manage.<\/p>\n

By:\u00a0Lisa Lindsay<\/a>\u00a0| June 26, 2018 \u2022 3 min read<\/p>\n

High net worth (HNW) individuals and families face many risks due to their complex lifestyles. The wealth they have accumulated makes their property and casualty exposures more complex than the average consumer, and their risks oftentimes rival those of a business in scope.<\/p>\n

The frequency and complexity of the risk exposures faced by HNW families and individuals make it necessary to adopt proactive risk prevention strategies, as well as the purchase of insurance protection to make them whole should they suffer a loss.<\/p>\n

1) Cyber Crime<\/strong><\/p>\n

The use of technology and social media, the number of connected devices per household and the number of people (staff, advisers) communicating with HNW individuals make them\u00a0prime targets for cyber crimes<\/a>.<\/p>\n

These crimes include email phishing, ransomware and unauthorized bank transfers. While the insurance industry is starting to offer insurance protection for some of these losses, the best defense is practicing good cyber hygiene.<\/p>\n

2) Catastrophic Weather Losses<\/strong><\/p>\n

Hurricanes, flooding and wildfires will continue to impact HNW families since many of them\u00a0own homes in disaster-prone tropical or mountainous regions<\/a>.<\/p>\n

Traditional risk identification tools such as FEMA flood maps are outdated and do not accurately reflect risk. In recent years, we\u2019ve seen unprecedented flooding in areas that have never or rarely been flooded before. These extreme weather events will continue to impact the HNW.<\/p>\n

To prevent losses, families and individuals must work with professionals who can provide more advanced risk identification resources, as well as resources to help prevent or mitigate losses, such as hurricane and wildfire protective services.<\/p>\n

HNW insured\u2019s with assets located where natural disasters occur must have a financial assurance strategy to address the pollution liabilities created by Natural Disasters.\u00a0 The ERMI HNW Pollution Program covers pollution liabilities from natural disasters or acts of God.\u00a0 ERMI has more information on pollution liabilities associated with Natural Disasters.\u00a0 Please contact us for more on this subject.<\/em><\/strong><\/p>\n

3) Collections Management<\/strong><\/p>\n

HNW families and individuals are known to have a passion for collections, such as art, furniture, memorabilia and cars. Many collections are a significant asset class in their financial portfolio and are managed aggressively to increase value, which may mean\u00a0the collection is on exhibition or on loan<\/a>\u00a0to museums and galleries.<\/p>\n

This increase in risk exposures requires specialized risk management solutions.<\/p>\n

A good example of how specialized risk management solutions comes into play took place after the California mudslides \u2014 coverage was afforded for some who had specialized fine art insurance versus traditional homeowners\u2019 coverage where mudslides are not typically covered.<\/p>\n

Collectables such as automobiles, boats, aircraft\u2026 have a variety of environmental exposures associated with their use, maintenance and storage.<\/em><\/strong><\/p>\n

Example:\u00a0 It was never determined how a yacht at a marina caught on fire.\u00a0 Because of the fire, neighboring boats also caught on fire.\u00a0 Fire departments responded to the fires and after the fires were put out the resulting environmental damage cost the yacht owner more than $2,000,000 in fines, penalties, cleanup, business interruption\u2026.<\/em><\/strong><\/p>\n

4) Employee-Related Risks<\/strong><\/p>\n

HNW families hire employees who help run their households. These individuals range from nannies, caretakers, captains and crew, to housekeepers and assistants.<\/p>\n

Employees bring about risk exposures related to on-the-job injuries and employment practices liability exposures. HNW individuals need to adopt the same stringent hiring practices that a business adopts when hiring and terminating employees.<\/p>\n

Practices should include background checks, onboarding protocols, regular performance reviews and the like.<\/p>\n

Employees (landscapers, janitorial, boat captains, aircraft pilots, contractors\u2026) can and do create environmental liabilities for HNW insured\u2019s.<\/em><\/strong><\/p>\n

Example:\u00a0 An English speaking but not English reading employee accidentally mixed non-compatible chemicals for cleaning.\u00a0 The fumes from the chemicals forced the evacuation of all the building tenants while decontamination took place.\u00a0 Third party bodily injury, property damage and business interruption claims against the HNW building owner exceeded $1,000,000.<\/em><\/strong><\/p>\n

5) Security Risks<\/strong><\/p>\n

Security at home and during travel \u2014\u00a0including the risks of\u00a0terrorism and global conflict<\/a>\u00a0\u2014 also remains a top concern.<\/p>\n

Security concerns can range from home security alarms and devices to worldwide travels concerns.<\/p>\n

For families with complex risk exposures, consulting with a security expert is recommended. These experts provide a full risk assessment that would minimize any security breach, such as a home invasion, a cyber breach or any other issue that could put the family at risk.<\/p>\n

HNW individuals are targets of vandals.\u00a0 Vandals can and have created environmental liabilities while carrying out their crimes.\u00a0 Under federal law, you are responsible for the environmental condition of your property regardless of who caused the environmental liabilities.\u00a0 The ERMI HNW Pollution Program can protect insureds from environmental liabilities caused by vandals.\u00a0 Terrorism coverage is also available with the ERMI HNW Pollution Program.<\/em><\/strong><\/p>\n

6) Professional Liability<\/strong><\/p>\n

Many HNW individuals hold board positions on for-profit, nonprofit and not-for-profit boards, yet the majority of individuals do not know if they\u2019re protected with professional liability coverage.<\/p>\n

If they know coverage is provided, the majority do not know the policy limits or terms and conditions. It is imperative that anyone who holds a board position understands their personal risk exposures and the insurance protection available to them.<\/p>\n

7) Ownership of Assets<\/strong><\/p>\n

HNW individuals tend to own assets in the names of trusts, LLC and other legal entities. It is critical that they understand the ownership structures of all assets and that all insurance policies are coordinated to properly cover all necessary policies.\u00a0<\/em><\/p>\n

Simply due to their ownership of assets, HNW insureds are impacted by a cornucopia of environmental exposures such as, Pollution from neighboring properties migrating onto yours;\u00a0 Real estate tenants using or storing environmentally sensitive materials, chemicals, waste\u2026.;\u00a0 Mold;\u00a0 Real estate with historical environmental problems;\u00a0 New Construction and remodeling;\u00a0 Air craft, auto, water craft storage \/ use \/ maintenance;\u00a0\u00a0 Privately owned businesses with environmental exposures due to operations or products produced (i.e. golf courses, agricultural \/ ranching, manufacturing, hotels \/ resorts, auto dealer and repair facilities, marinas\u2026);\u00a0 Vendors such as contractors (i.e. HVAC, electrical, plumbing, painting, septic), domestic help, landscapers \/ maintenance, pool cleaning \/ maintenance, caterers, boat captains, aircraft pilots\u2026);\u00a0 Storm water runoff;\u00a0\u00a0Leaks from elevator hydraulic fluid storage tanks;\u00a0 Impacting sensitive areas such as wetlands or endangered species;\u00a0 Natural resource damages;\u00a0\u00a0 Sick building syndrome;\u00a0 Above ground or underground storage tanks;\u00a0 Adverse reactions and interactions of chemical compounds that accidentally commingle during a fire;\u00a0 Farm\/garden\/lawn fertilizers, herbicides, pesticides\u2026;\u00a0 Easements (utilities, oil, gas\u2026) that cross your property which may leak or spill hazardous materials;\u00a0 Fuel for backup power generators;\u00a0 Asbestos; Lead;\u00a0 Vandalism;\u00a0 Vapor intrusion\u2026.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

In this High Net Worth (HNW) competitive environmental intelligence, we examine the article \u201c7 Crucial Risks Facing High Net Worth Families\u201d and have broadened it by adding the environmental exposures (bold below) that are part of the 7 crucial risks facing HNW insureds. As the article highlights:\u00a0\u00a0High net worth (HNW) individuals and families face many… Continue reading Environmental Exposures Impacting High Net Worth Insureds<\/span><\/a><\/p>\n","protected":false},"author":223,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[3,4,5,7],"tags":[359,307,77],"class_list":["post-2453","post","type-post","status-publish","format-standard","hentry","category-resources","category-featured","category-risk","category-webinars","tag-high-net-worth-insured","tag-risk","tag-vapor-intrusion","entry"],"_links":{"self":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/users\/223"}],"replies":[{"embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/comments?post=2453"}],"version-history":[{"count":6,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2453\/revisions"}],"predecessor-version":[{"id":2459,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2453\/revisions\/2459"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=2453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=2453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=2453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}