How to Protect Client Portfolios From Excess Liability Claims

Unexpected Events

An insurance agent or broker specializing in HNW clients can help identify and evaluate risks that your clients may not recognize. Consider these two examples:

Dog bite severely injures girl — In one Chubb claim, a client’s dog bit a young girl who was airlifted to a hospital and underwent surgery, resulting in the client’s excess liability policy paying $2 million for the girl’s treatment and recovery.
Authorized driver causes serious accident — In another Chubb claim, a client’s daughter loaned her car to a friend who drove recklessly and severely injured a passenger. The client’s excess liability policy covered an additional $5 million for the injured passenger beyond the limit of the primary auto policy.

Moreover, your clients may have taken on new risks during the COVID-19 pandemic that have not been evaluated for risk and insurance coverage.

For instance, because of limitations on travel and the need for social distancing during the pandemic, many successful families have purchased new lifestyle assets — such as a boat, motor home, vacation property or a new dog. While these purchases can bring immeasurable value to a family’s quality of life, they also carry new risks that may require additional insurance.

Actions Advisors Can Take

Recent Chubb research conducted in partnership with Oliver Wyman found that 85% of successful individuals believe their financial advisors should act as a “quarterback” for all of their financial needs, providing guidance not only on investments but also on addressing P&C risks. Yet only 28% of advisors help their clients identify these risks.

You can differentiate yourself and provide a new level of service by helping your clients protect against portfolio losses that might result from a liability claim. By highlighting the benefits of excess liability insurance, you’ll provide the holistic guidance clients are looking for.

Ask your clients if they work with an independent insurance broker or agent who specializes in P&C insurance. Also, we strongly recommend you partner with an agent or broker and bring them into conversations with your clients.

Ana Robic is division president, North America Personal Risk Services, Chubb. She can be reached at [email protected].