Unfortunately, the answer is yes. Jeffrey O’Hara of Clyde & Co. U.S. explains that when damages exceed liability coverage, plaintiffs are much more likely to pursue compensation. In order to ensure that they have no gaps in their liability coverage, affluent Americans should consider Connecticut high net worth insurance.
Specific Exposure for the Wealthy
According to an ACE Private Risk Services survey, wealthy individuals have named their top four areas of exposure:
- Auto accident injuries at 47 percent
- Work-related injuries, including repairpersons or household employees at 31 percent
- Injured visitors to the home at 29 percent
- Incidents related to volunteer work, including accusations of misdeeds, at 22%
Other situations include claims of wrongful termination by household employees, sexual harassment claims by in-home caregivers, and family disputes.
Many Judgments Are Based on Non-Specific Amounts
When a person is found negligent in an injury accident, the decision to compensate for actual expenses including medical bills and lost wages can be very straightforward. However, for non-specific damages such as pain and suffering, awards can vary greatly. Plaintiff’s attorneys will make sure the jury knows when the defendant is affluent. They will take advantage of the public perception that every wrong deserves cash compensation, in order to drive up the judgment in favor of his or her client. For this reason, affluent citizens are more vulnerable to lawsuits and more in need of Connecticut high net worth insurance.