More Good Advice to Protect Your Lifestyle
As specialists in the high-net-worth arena, Kelly Klee agents advise individuals and families about how to be sure they are adequately and fully insured. Our last blog post included an interview with Kelly Klee General Manager John Smith about important insurance coverage to consider. Here President and Co-Founder Bob Klee shares some insights about more key areas that are often overlooked
Q: It’s not uncommon for those with high net worth to engage temporary or permanent staff, such as nannies, gardeners, maids, assistants, etc. Why does this put them at special risk?
A: Sometimes employees start to feel like family members. But when there is a real or alleged injury or employment issue, the relationship can change suddenly. Two coverages that get missed quite often are workman’s compensation and EPLI, or employment practices liability insurance.
Most people have heard of workman’s comp, which covers things like hospital and medical expenses for people who are injured while working. It also usually covers disability payments at a reduced salary level if there is a healing period and sometimes pays for rehabilitation and retraining.
EPLI may be less well known but is just as important. This type of insurance gives you coverage against claims by employees that allege discrimination, wrongful termination, harassment (including sexual harassment) and retaliation. The important thing to know is that these types of claims don’t have to be real for them to be alleged; EPLI covers you either way.
Q: That’s where reputation management coverage comes into play, right?
A: Exactly. A false accusation can be just as damaging as a guilty verdict. Our excess liability policies—also known as umbrella policies—include experts to help manage your reputation so that someone looking to cash in doesn’t trash your good name in the process.
Q: What other reasons are there to take out an umbrella policy?
A: Let me give you a real-life example. I had a new customer referred to me in January a few years ago. He is very wealthy but had no personal umbrella coverage—he had never heard of it. We got him covered as soon as possible.
In March, his son went on a road trip for Spring Break with some friends, fell asleep at the wheel and overturned his truck. The son wasn’t badly injured, but two of the boys that were passengers will never walk again. It was tragic.
This was a $10 million claim, which exceeded the maximum on his auto policy. If we hadn’t put the umbrella policy in place, my client would have lost everything. He called me on the way home from visiting his son and asked what other insurance he could buy from us because he was so grateful.
Excess liability is inexpensive insurance, but it’s amazing how few people have it. It’s a relatively small investment for a great deal of protection.
Q: Are there any other coverages that you think successful individuals should consider?
A: Yes. Another big one these days is cyber liability, especially for people with children who use social-media applications like Facebook or Snapchat. Whether it’s announcing that the family will be out of town or making an inappropriate comment, a youth’s lack of discretion can leave his or her family exposed.
Whether you have children or not, most of us are vulnerable in lots of other ways, too. For instance, a lot of homes can now be managed remotely with software, which, while convenient, opens an online door for someone with expert computer skills to gain entry. Other concerns include the possibility of someone hacking into your desktop or laptop computer at home—think about how much sensitive information you may have on your computer, not only about yourself, but also about family members or your business. Identity theft is also covered by these policies.
A good cyber policy, like that offered by our insurance partner PURE Insurance, will not just protect you after an incident has occurred, but will also offer a home cyber security audit to help identify areas of weakness and teach you how to better protect yourself.
Q: Is that extra level of service typical from an insurance company?
A: It is at the companies we partner with. At Kelly Klee, we understand the unique needs of our exclusive clientele. We only partner with insurers that specialize in covering successful clients, and we know what questions to ask to make sure that our clients have the coverage they need to be fully protected. We expect the highest level of service both from our insurers and from ourselves.
If you’d like to review your insurance coverage with a Kelly Klee insurance expert, please contact us at 855-884-1600 or email email@example.com for our easy and thorough insurance checkup.
Want to learn more about cyber risks? PURE Insurance has a brief but informative white paper on the subject here.