It’s no surprise that high-net-worth (HNW) individuals deal with not just more, but also different, financial responsibilities than lower-income business owners. Combining protection for high-value business assets, properties, personal heirlooms, private collections, and other items can become complicated with multiple, often conflicting, insurance policies. This is why most high-net-worth individuals know to seek private client insurance that bundles their business and personal insurance needs under one roof.
For high-net-worth individuals in Hawai‘i who are considering combining coverages, or newly preparing for coverage, this guide explains why bundling coverage is important. Customizable insurance solutions by a local provider excel at covering every need, whether personal or business, without leaving costly coverage gaps.
The Complex Risk Profile of High-Net-Worth Individuals in Hawai‘i
High-net-worth individuals, defined as those with liquid assets valued over $1 million, have complex risk profiles. Financially, their responsibilities often include multiple properties and residences, local business operations, trust funds and charities, and high-value assets such as luxury vehicles, collectibles, art, watercraft, and more.
Ownership of these assets leads to greater financial liabilities resulting from conventional risks such as theft, vandalism, and fires. However, these individuals have other distinct risks related to their net worth, emphasizing the need for customized private client insurance designed for.
How Do High-Net-Worth Individuals Insure Their Money?
The risk of loss being significantly higher and very specific for HNW individuals compared to others, they insure their assets using more comprehensive private client insurance policies. High-net-worth insurance coverage commonly includes:
- Excess Liability and Umbrella Insurance
- Cyber Liability Insurance
- Directors and Officers (D&O) Insurance
- Kidnap and Ransom Insurance
- Wealth Structuring and Trust-Compatible Coverage
- Strategic Planning and Review
These policies cover individuals beyond conventional needs, providing options to strategize their risk management profiles based on their circumstances. These special coverages include protection for reputational damage, ransom coverage, reimbursement of legal fees, and more.
Benefits of Bundling Business and Personal Insurance
By bundling business and personal insurance coverage, high-net-worth individuals can protect the essentials, cover extenuating circumstances, and leave room to expand coverage for new situations with these essential benefits:
Simplified Insurance Management
With bundled private client insurance policies, high-net-worth individuals can reduce the administrative labor of managing their risk profile and insurance coverage. With one advisor or team handling all the policies, individuals can consolidate their billing and documentation processes, customer service contacts, and claims and renewal processes.
Comprehensive and Cohesive Coverage
Bundled policies reduce coverage gaps often caused by conflicting personal and commercial insurance policies. By removing redundant or conflicting coverage, high-net-worth individuals can reduce the risks to their assets and better coordinate their risk response strategy.
Cost Efficiency
Policy bundles often provide multi-policy discounts in addition to other cost savings. High-net-worth individuals can reduce their administrative overhead by simplifying the claims and renewal process to one policy provider.
Enhanced Access and Service
With additional responsibilities, high-net-worth individuals require additional services from their insurance providers. When insurers bundle multiple high-worth policies, they often assign priority attention to the account, granting access to custom underwriting and other premium policy features.
With lower risks and better coverage, bundled policies can also strengthen the individual’s positioning with national and international carriers. The claims process tends to provide priority, expedited service as well.
Real-Life Scenarios
Policy bundles can be configured in multiple ways to combine personal and business insurance interests. For example, a business owner may combine their commercial liability policy with homeowners coverage and auto insurance to increase their benefits.
Policies can be combined more creatively to suit diverse needs. For example, a property investor may combine personal and rental property coverage to consolidate their benefits. In another case, a high-net-worth individual engaged in family legacy planning may combine their personal estate continuation protection with business coverage.
How Atlas Insurance Supports High-Net-Worth Clients
At Atlas Insurance, our experienced team of advisors supports high-net-worth clients by tailoring private client insurance to their specific needs. Hawai‘i-based high-net-worth individuals contend with specific challenges that warrant access to specialized carriers and premium-level policy options.
This is why we integrate insurance advice through our Atlas Blueprint Process, which pairs local insight with global insurance partnerships to provide the exact coverage bundles our valued clients need.
When to Reevaluate and Bundle Coverage
High-net-worth individuals with existing coverage should re-evaluate their risk profile and eligibility for bundling after any event that may change their coverage needs. These can include:
- Acquiring new assets, locations, or businesses
- Managing multiple policies through multiple providers
- Experiencing a loss event that warrants new coverage
- Handling estate or succession planning for personal or business interests
Any event that adds additional responsibilities, changes the estate’s value, opens new accounts, or results in a significant loss can change the individual’s insurance needs. Yet, opening multiple policies with different providers often leaves costly coverage gaps.
For high-net-worth individuals, these gaps can be financially damaging, not only for themselves but also for their families and employees. Bundled policies provide an opportunity to consolidate benefits and clarify coverage to resist change, as well as protect existing assets with expert help.
Contact Atlas Insurance for Expert Guidance with High-Value Insurance Bundles in Hawai‘i
High-net-worth individuals in Hawai‘i have distinct risk management needs that often drive higher costs and increased confusion surrounding their insurance coverage. Instead of recruiting multiple companies for multiple policies, premiums, and coverage limits, high-net-worth individuals should consider a private client insurance bundle through a single provider to streamline their administrative efforts, cut costs, and clarify their benefits.
At Atlas Insurance, our team builds on nearly a century of experience helping local high-net-worth individuals in Hawai‘i find private client insurance that covers their needs. Contact our team today to learn more about the benefits of business and personal policy bundles in your situation.