All About You: Personal Liability Risks and Exposures (Part 1)

oswaldcompanies January 25, 2017

Significant life events. Your ever-changing financial picture. An elevated public profile.  All of these situations need to be evaluated each step of the way, to properly safeguard your assets against liability risks.

How much liability coverage is enough? 

Consider your profession and associated earnings, both current and future, the value of the tangible assets you own and assets not protected by a Trust or other legal entity. This number is a moving target and as your wealth accumulates, your liability limits should be evaluated and increased to ensure that you have the proper protection.

We live in a litigious environment where costly lawsuits can result in eight-figure jury verdicts.

Your financial security could become severely compromised due to accidental events you may have thought were covered.

Practicing consistency and committing to annual insurance reviews will afford the broadest coverage available to you, especially when partnering with a professional who understands the unique exposures of high earning and high profile individuals.

Securing your financial future

Insuring your homes, autos, watercraft and other recreational vehicles with a high-net-worth carrier who understands your needs is the first step toward protecting your nest egg.

Consider Excess Liability coverage and/or increasing your limit of liability coverage for losses you or your family member are vulnerable to, resulting from losses caused by Uninsured or Underinsured drivers. This is an area of ever increasing loss activity as our increased population has more drivers sharing the roads with pedestrians and cyclists.

Should you require defense in a lawsuit, whether it is groundless, false or fraudulent, your Excess Liability coverage will help to respond to these costly legal expenses.

What may NOT be covered by personal liability coverage:

  • Intentional Acts
  • Personal Injury – some insurers view high profile athletes as high risk and may restrict or eliminate this coverage from their personal liability policies – be sure to check all underlying and excess policies for exclusions pertaining to libel, slander and internet defamation
  • Off Field Activities – appearances, signings, speaking engagements
  • Incidental Business Activities – musicians, gym studios, rental property income, etc.
  • Charitable Foundations – employees, fiscal management
  • Actions of Others – family members, employees, others living with you or in your care
  • Children attending school away from home or while studying abroad
  • Contractual agreements – always read the fine print
  • Employee Practices Liability – wrongful termination, harassment
  • Rented watercraft, jet skis, snowmobiles, and other recreational vehicles and toys
  • Uninsured/Underinsured Motorist Coverage – Auto
  • For Profit and Not for Profit Board Activities
  • Family Trust Management
  • International Exposures
  • Workers’ Compensation Exposures
  • Properties rented to others under short term lease or rental arrangements for vacation purposes, or through Air BNB or VRBO and similar websites

In part 2 we discuss situations to consider when evaluating your personal liability risks and exposures.

Contact our personal client management team to continue the conversation.

View the second part of this personal liability introduction, All About You: Personal Risk and Liability Situations (Part 2).

Note: This communication is for informational purposes only. Although every reasonable effort is made to present current and accurate information, Oswald makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information. View our communications policy