Investors look at a variety of risks when it comes to their money. However, most of that risk they look at has nothing to do with their bottom line. Umbrella insurance for high net worth individuals covers the excess liability that comes with wealth.
High net worth individuals have a higher chance of being sued following an accident, but many do not have the additional coverage necessary to fully cover their liabilities. According to https://www.sboneinsurance.com, the purpose of umbrella insurance is for financial assistance where your other insurance policies stop. For example, auto insurance pays for the damage in an accident, but then the other party sues you civilly. Umbrella insurance can step in to pay those additional damages.
When planning for college or retirement, you need to consider how to protect those assets. Wisely investing your money is a great start, but that does not protect your assets from the possibility of bankruptcy or keep them away from potential creditors. An accident can happen at any time at your home or on the road putting you at increased risk for someone to file a claim against you.
You worked hard to build your wealth and secure your future. Evaluate your insurance coverage to see if umbrella insurance for high net worth individuals need to be a part of your plan.