Is Being Insurance Savvy the Secret to Adding Value to a Ultra High Net Worth Principal?

It's quite possible there isn't anything more boring than talking about insurance but I find it one of the most overlooked areas of Lifestyle Management I have managed for Ultra High Net Worth Principals.

It’s a key area to add your expertise, save the Principal money and demonstrate that you are adding value to their lives when something goes wrong.

I'm passionate about helping the Staff of Ultra High Net Work Principals stand out and win extra kudos wherever we can.

So, if you are in a position of responsibility and there’s even a whisper of you potentially being involved in dealing with an insurance claim or negotiating the insurance portfolio, this one is for you.

What kind of insurances am I talking about?

The key areas Lifestyle Managers, Estate Managers and Personal Assistants are often asked to take care of:

? Health insurance

? Travel insurance

? Property insurance

? Vehicle insurance

? Specialised insurance like art and jewellery

? Pet insurance

Needless to say, I’ve been involved in them all for all of the UHNW Principals I’ve worked for and I can confidently say there’s huge variation in the industry in how Principal’s choose to insure the above, or in fact not insure at all.

Sometimes one insurer takes care of literally everything, sometimes there's crossover in policies and sometimes insurance may be secured for each element, individually.

Policy choices matter

As with many things in UHNW lives, Principals are often creatures of habit and may not even closely look at what insurance policies they do or don’t have.

If you’ve recently begun working for a Principal, checking insurances is one of the first areas I recommend reviewing.

You do not want to be caught short between a Principal thinking something is insured and then a policy lapsing on your watch.

It’s also an area where you add real value if the policy has not been recently reviewed or updated.

Imagine a piece of art goes missing that is incorrectly insured? You’ve just saved the Principal thousands/millions.

Must Do: Before you engage with insurers

Before you take it upon yourself to tender insurance to a broker or insurer, it’s important you understand your Principal’s preferences on insurance.

They may view it as irrelevant and you have free rein to pick whatever policy you see fit. Or, they may specifically ask you use careful due diligence to ensure items are fairly valued vs the higher cost of premiums.

You need clarity on what their preference is, if they are to approve insurance costs.

You could get into hot water with mismanaging these expectations, especially if you have disclosed sensitive information to an insurer before checking with the Principal.

To broker or not to broker?

Chances are if you are new to negotiating insurance you may have never engaged with a broker. For my personal life, I’d never use a broker.

However, when you’re dealing with the many strands of a UHNW lifestyle and needing a bespoke service, brokers can be key and will help you achieve a result you can’t always attain by going direct to market.

Do you really understand what you're insured for?

The good news is most insurers who are accustomed to UHNW insurance portfolios offer fair payouts in the event of something going wrong.

This contrasts with many standard domestic policies, which often only cover the "goods value" instead of the "replacement value".

The goods value means:

I bought it for ￡50 two years ago therefore they only pay ￡25 to account for depreciation.

The replacement value means:

I bought it for ￡50 two years ago and now the RRP is ￡70 so they pay ￡70.

This and clarifying any specific clauses are important areas of fine print to check.

Other examples where you could get caught out are:

• Jewellery is only insured whilst in the UK therefore being worn abroad whilst Principal is on holiday would be excluded
• Cover for staff members driving cars being different than if the Principal were driving or a nominated chauffeur - excess is ￡1,000 for staff and ￡100 for the Principal should an accident happen

• Art being moved between properties?- The art is insured for damage or theft whilst in two specific locations however, it is not insured whilst being moved between the two in the removals van

When it comes to health and pets, it's important to check any exclusions and excesses.

Important questions to ask are:

• Can the policy holder seek healthcare or veterinary anywhere or is it specific providers only?
• Are there any caveats to overseas cover?
• Is there an excess and if so, how much?

Valuations

Many insurers insist on some sort of valuation process for high value items such as jewellery, wine and art. It is good practice to get valuations done at least every 3 years although I could name dozens of Principal's who don't bother.

It is often ultimately up to Principal's how they choose to manage their insurance, but you need to be aware of the pitfalls of underinsuring so this is clearly laid out to them during any negotiations and to protect your own credibility in the event of a claim.

Having an up to date and clear inventory of art and high value items is also crucial to success here. This is something I help Staff and Principal's put in place. WhatsApp me to today for more information.

Pictures and Authenticity

One of the easiest ways to ensure a seamless insurance payout is having as much proof of authenticity as possible (receipts, certificates, documents) and pictures - the more recent and up to date, the better.

As a Lifestyle Manager I would always meticulously file any paperwork as a soft copy and hard copy to ensure relevant information can be easily accessed in all eventualities.

I would also regularly take photographs of any important items. In particular, making sure the photographs are large and of high quality is key.

Sending insurers hastily taken, blurry photographs is less than ideal and could impact a claim.

Vehicles are becoming increasingly challenging

Insuring cars can be increasingly complex, especially in certain areas like London where there are sophisticated gangs targeting specific car models and brands.

The best preventatives to stop thieves in their tracks and lower your insurance premiums are:

• An after market immobiliser
• An after market tracker
• Keeping keys in a faraday box

Whilst many cars have immobilisers and trackers fitted as standard, thieves are increasingly capable of navigating around these with the software they are using.

Even faraday boxes are not as useful protection as they once were and cameras are next to useless because many of the thieves come fully suited, making tracing the culprits nigh on impossible.

What's your insurance action plan?

Insurance claims can happen at any time day or night and count as a 'code red' emergency. If something has gone wrong and a claim needs to be made or initiated, the insurance details need to be readily available to anyone engaged with the Principal who may need to call on their behalf and the Principal themselves.

I always create an Emergency Documents file and Insurance Contact on the Principal's phone to empower them with this information, whilst making sure relevant staff members have the contact information to hand.

The last thing you want to do is blockade the Principal being able to get the help they need because you have the insurance policy buried in your emails and are uncontactable.

Lastly, never underestimate the use of an AirTag

Airtags are one of my favourite low-key ways to add a little extra insurance to items.

Whether it's the Principal's luggage when flying commercial or a valuable piece of art that has to be transported.

These small tags from Apple use iPhone signals to bounce back and forth to enable you to track whatever item you attach the Airtag to within a 10 to 30 meter range.

And don't forget, make sure 'Find My' is always turned on with any Mac computer, iPad or iPhone.