I grew up eating Wheaties and couldn't help but remember Bruce Jenner. An olympic decathlete and arguably one of the best all around athletes in the world! From Olympic Gold to reality tv, and now a very public divorce (not to mention wanting to become a woman), one has to wonder #WTH happened to this guy?? This post however, is more about the lack of financial responsibility and adequate protection than Mr. Jenner's fall from grace. On February 9th of this year, Bruce Jenner was involved in a fatal car accident which resulted in the death of a 69-Year Old Widow, Kim Howe. Reports vary, but some say he may have been texting while driving as well as driving too close. In either event, a lawsuit is eminent and he has already hired top tier legal counsel to help him navigate this mess. Per the Daily News Article from last night, it appears that Mr. Jenner only has $250,000 of personal liability insurance protection?? Who is this guys insurance agent? Wealth Advisor?? That amount of coverage is the basic amount provided under a typical homeowners policy and would be inadequate for just about anyone let alone someone of Mr. Jenner's notoriety and fame. As the article alluded to, Personal Umbrella Liability protection should usually be at least 1-2x net worth in order to protect you and your family in the most conservative and catastrophic scenarios like the one Mr. Jenner has found himself in.
As an insurance and risk management consultant dealing with the high-net worth community, our team always recommends reviewing options of $5,000,000, $10,000,000 and $15,000,0000 of additional liability protection per year. Surprisingly, umbrella policies are not as expense as people think and should absolutely be part of the wealth preservation and protection side of advising the HNW community.
Here is a link to a post we wrote almost two-years ago entitled "Targeting the Rich: Liability Lawsuits and the Threat to Families with Emerging and Established Wealth". Here you will find a great White Paper from ACE Private Client group inclusive of recent verdicts and settlements indicating the the potential costs that a family could incur.
One has to wonder who in the world was advising this family??
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