CBIZ Response to Rockwood SD RFPHRBE0816

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CBIZ, INC. BIZGROWTH STRATEGIES – SUMMER 2016 | 7
Insurance Strategies
Protecting Your Wealth:
3 Key Questions
You Need to Ask
PEGGY ARLEDGE
CBIZ Insurance Services, Inc.
Boca Raton, FL
561.862.7259 •
BY PEGGY ARLEDGE
A very important and often overlooked aspect of
wealth accumulation and preservation is working
with an insurance professional who partners with
other advisors, including accountants, wealth managers,
attorneys and business managers, to holistically serve
their clients. A trusted property and casualty advisor is
one who ensures they understand their client’s lifestyle,
assets, tolerance for risk and complexities, such as multi-
state and/or non-U.S. residences, employing domestics
and serving on non-profit boards. This engagement is
crucial to identifying potential exposures, developing a
property and casualty plan for risk transference, and
engaging resources that can assist with reducing and
mitigating risks as part of the overall wealth preservation
strategy. If a significant uncovered loss occurs, one’s
financial portfolio is negatively impacted. The following
questions can help you identify potential areas of risk.
1. Is your home properly insured and protected?
Rebuilding a home presents different costs than
building a new home, such as demolition, debris removal,
architectural and interior design fees, a builder’s profit,
and materials that are of like kind and quality based on
current pricing.
If you suffered a total loss and wanted to avoid
the requirement to rebuild your home, does your policy
afford you this option? The niche market space of high-
net-worth carriers does. While you may have loved the
home and area at one time, perhaps moving away from
the location where you experienced an emotional loss
would be advantageous. This means you also would
have the option to sell the land, which doesn’t involve
anyone’s approval.
2. Do you have enough personal excess liability
insurance?
When was the last time you evaluated your tolerance
for risk and how that correlates to your net worth and
legacy planning? This is one of the most important
contracts you can purchase and one of the most
affordable. Serious consideration about the cost to
transfer a large judgement and the defense costs that
accompany it versus the cost to self-insure for a scenario
should be discussed with your wealth manager and other
advisors.
How does your contract respond to the cost to defend
you? Is the defense cost “within” or “in addition” to your
liability limit? Another benefit amongst so many that high-
net-worth carriers offer is defending you at their cost so
that their legal defense does not erode the coverage limit
necessary for a potential judgement.
3. Do you employ a private staff?
When was the last time you asked your tax advisor for
the IRS’ definition of who is an employee? You will likely
be surprised by the answer. There are times when an
independent contractor can be deemed your employee.
This is a worthy discussion to have and one that your
insurance advisor should be having with you and your
tax advisor. You can purchase coverages to protect
yourself from injuries an employee suffers while “in your
employment,” as well as coverage designed to defend you
in lawsuits alleging wrongful termination, discrimination,
harassment, emotional distress and breach of contract
amongst others. These types of lawsuits are on the rise.
Take time to proactively get your personal life in
order by engaging a property and casualty specialist
who will design a customized plan for you. Your personal
insurance plan should be by design – not by default – as
should the broker you hire to serve you.
DISCLAIMER: This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional
advice. This information is general in nature and may be affected by changes in law or in the interpretation of such laws. The reader
is advised to contact a professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in
connection with the use of this information and assumes no obligation to inform the reader of any changes in laws or other factors that
could affect the information contained herein.