A large net worth can help eliminate a number of financial risks, but only when all possible problems are accounted for. For members of the upper class, the biggest challenge to their wealth often doesn’t come from accidents or financial trouble, but liability claims. Connecticut high net worth insurance is necessary to defend against lawsuits and preserve wealth.
The problem with liability claims is that there’s no limit to the damage they can cause. If a car crashes, then the financial loss is limited to the cost of the car; if a piece of jewelry is lost then the loss is limited to the value of the piece. In a liability claim, however, there is no limit to the amount of damages that somebody can claim. Even if the case is decided in your favor, legal fees can be prohibitively expensive. A settlement intended to keep the case out of court can be even pricier.
The wealthy are especially at risk of being sued because of their higher profile. People are more likely to attack public figures, but even private entities are still vulnerable. Litigants will assume that their target can handle the costs of the lawsuit and feel more comfortable demanding high sums.
A legal challenge can come from friends, employees, estranged family members, or even complete strangers, so it’s best to be prepared for any eventuality. Connecticut high net worth insurance liability coverage is the best way to guard against lawsuits and protect your wealth.