Insurance coverage protects your assets against various types of loss or damage. For high-net-worth business owners in Hawaiʻi, the quality of the coverage should be proportional to the cost of any potential losses. But what is “high net worth,” and how does it impact the choice of insurance policy for business owners?
A financial advisor experienced in the insurance coverage needs of Hawaiʻi business owners can help establish a policy that caters to your specific needs as an HNW client.
In this article, we explore how high-net-worth assets can impact your long-term insurance goals and what you should look for in a new policy as a business owner with personal and professional assets to protect.
What is High-Net-Worth?
High net worth (HNW) can be defined as having liabilities that exceed those of average policyholders, often related to multiple property ownership, high-value belongings, business assets, and more. In terms of dollar amounts, HNW individuals have liquid assets valued at $1 million or more, according to the World Wealth Report 2024.
Above $5 million, the individual may be considered “very high net worth.” Above $30 million, they may be considered an “ultra-high net worth individual” (UHNWI). Importantly, you may be a millionaire without qualifying as a high-net-worth individual if your liquid assets alone do not exceed $1 million.
Therefore, it is not only the value of the assets but the type of assets that factor into a business owner’s eligibility for HNW insurance policies in Hawaiʻi.
What Do HNW Insurance Policies Cover?
Individuals who classify as HNW or higher likely have considerable assets including:
- Multiple properties, including vacation homes, and rental properties
- Vehicles, including vintage cars, motorcycles, RVs, boats, and more
- Collectibles, including jewelry, art, wine, and heirlooms
In addition to covering these and other valuable items, HNW policyholders need higher limits for their personal and business policies. These policies are designed to cover repair or replacement costs if valuable assets are damaged or destroyed if the circumstance is explicitly covered.
Understanding which events are covered is fundamental to receiving adequate coverage. Fortunately, high-value policies often cover extenuating circumstances that go beyond the purview of typical policies. These added areas can include lost business assets due to power outages, flood damage, or value loss due to defamation, slander, or extortion.
This is not an exhaustive list of the coverage areas possible with a versatile high-net-worth insurance policy. Due to the high value and nature of the assets, these policies can be customized for the business owner’s specific needs.
HNW business owners in Hawaiʻi should work with a provider experienced in providing policies for individuals in their value bracket as well as a history of efficiently repaying valid claims.
What are the Advantages of High-Net-Worth Policies?
HNW insurance policies provide advantages proportional to the value of the assets they cover. Many of these benefits are not present in conventional homeowners’ and business owners’ insurance policies for that reason. The most prominent advantages include:
Flood and water damage coverage, which is often excluded from basic policies- Guaranteed replacement, which covers the full worth of high-value assets
- Business property and business asset coverage
- Identity theft and financial fraud protection
- High-value personal item coverage
- Luxury transportation coverage
- Data protection, including cybersecurity coverage
- Personal liability coverage
In addition to these itemized benefits, HNW insurance policies provide maximum coverage under a single policy premium. While conventional personal and professional policies require multiple policies and additional riders, HNW policies cover multiple asset types in one seamless package.
Consider multiple property coverage as an example of this benefit in action. An HNW policy that covers properties and their surrounding real estate guarantees that damage resulting from certain situations, such as floods, will not slip through the cracks in the coverage.
High-wealth and high-profile individuals should consider comprehensive coverage a priority, including coverage for data events such as cybersecurity breaches and identity theft.
Business owners who serve on charitable organizations and other board positions should also prioritize personal liability coverage, paying special attention to the policy’s coverage conditions.
Personal and professional breaches are more significant for individuals in these positions, which is why HNW policies prioritize security above and beyond the capacity of conventional policies.
Consult with a professional agency about your needs as a high-net-worth individual, particularly if you hold organizational or board positions, to learn how an HNW insurance policy can protect your assets in your specific case.
Contact Atlas Insurance for High-Net-Worth Personal and Business Coverage
At Atlas Insurance, we provide high-net-worth business owners in Hawaiʻi with comprehensive coverage tailored for their specific needs. We understand that HNW assets merit additional protection, and we strive to provide our clients with policies and services that adapt to their situations.
Contact our experienced team today to learn how we protect high-value personal and professional assets for business owners in Hawaiʻi. Our experts can examine your specific risk factors, value your assets, and more to guarantee that you have access to a policy that combines personal and professional coverage in one comprehensive package.