As a high-net-worth individual, you no doubt carry adequate insurance to cover your valuables. Does that mean you’re “covered”? Exotic insurance products (or riders) can fill the gap where a standard policy falls short. Let’s consider a few types of exotic insurance: Marine kidnap and ransom insurance, Ferrari Insurance, fine art insurance, and jewelry insurance. As we take a look at each of these, you may find that private security services should play the primary role in risk mitigation – and there’s far more involved than protecting or recovering lost financial value.
Insurance doesn’t payout based on your personal, sentimental value. If a Ferrari that your Dad gave you in 1983 is stolen from your garage, you will never be able to replace it. A family heirloom snatched in a burglary might be priceless to you, but only be worth a few thousand dollars as far as the insurance company is concerned.
These items are difficult to trace, even when given law enforcement’s attention. And resource-strapped police departments have many other issues to prioritize. An estate pearl necklace isn’t likely to rank high on their list.
And your insurance coverage kicks in after the fact. Insurance doesn’t prevent thefts or criminal acts – and bad actors don’t operate by a code of conduct. When valuable items draw their attention, many will stop at nothing to get them.
As a high-net-worth individual, you and your loved ones are at risk of suffering emotional trauma or physical harm.
Instead of banking on your insurance to cover any financial loss from criminal activity (and pay for therapy or medical bills), why not actually protect yourself?
Private security prevents thefts from happening in the first place. If you’re evaluating possible insurance policies, look for where you may want the protection of professional security services as well.
You can easily get comprehensive jewelry insurance with a specialized policy. This will cover what it will take to replace or repair any items.
And jewelry insurance is essential. A good policy will fully compensate you in the event of unexplained loss or theft.
So, do you also need protection?
If your jewelry is kept locked away in a bank vault, you do benefit from their security. But any jewelry stored in your home or worn on your person needs to be protected.
If you wear a nice watch, have special evening pieces, travel with jewelry, or routinely wear anything you value, you need to consider personal and property protection services.
High-value items draw attention. Criminals won’t hesitate to use violence to get what they want.
Brazen gang members went after diners in upscale Beverly Hills Italian restaurant, Il Pastaio. It was the middle of the day.
They yanked a $500,000 Richard Mille watch right off a man’s wrist. A woman was shot in the leg during the commotion.
The gang members have since been arrested, but the watch is still missing and the diners are still traumatized.
Fast-fashion mogul, Richard Saghian was targeted recently. Visitors were accosted on their way into his home in the Hollywood Hills. The armed robbers wanted their watches and other personal items.
A professional security guard (former law enforcement) intercepted the robbery and turned the tables. He fired on them and sent them fleeing.
Jewelry can be replaced and repaired, as long as it isn’t sentimental. But you can’t undo the emotional trauma or physical harm.
If you have luxury watches, jewelry, gemstones, or sentimental valuables, you can protect them and yourself with professional security.
Lamborghinis are one of the priciest vehicles to insure, for good reason.
These luxury supercars are meant to be driven fast and hard and are among the most expensive in the world. Repair parts and services are equally expensive.
But when well-maintained, these vehicles can appreciate in value over time.
So, is a great collector car policy the only thing you need to protect your investment?
A man driving a red Lamborghini Uru was shot in the leg when three robbers assaulted him for his vehicle.
He was sitting outside a home in a quiet, upscale neighborhood. The carjacking happened in Markham, Ontario, a Canadian suburb that’s generally considered safe.
His injuries were serious and the vehicle hasn’t been found yet.
In Miami, thieves actually scaled the walls of one mansion to get at the vehicles within. They wanted a Lamborghini Uru and a Porsche 911. A security guard on the property had to fire at them to scare them off.
Another Miami man actually chased down his Lamborghini when a thief got into his garage and took the keys. Fortunately for him, the thief was an inexperienced teenager who wasn’t yet a hardened criminal or willing to kill.
Thieves, gang members, and general low lives will stop at nothing to get what they want. Taking your prized possession is a status symbol for them. They’re willing to shoot and even kill for it.
Luxury vehicles draw attention, even when you’re sitting in your vehicle, waiting outside your home, or going about your daily routine.
Thieves can be prowling, roaming, looking for an opportunity, or staking you out. You need personal protection.
Ferraris are another luxury car with costly insurance. Even a light parking bump or fender bender can severely damage these cars. It may also need racing tires or special event coverage.
Specialized Ferrari insurance costs several thousand dollars. These policies often cover the agreed-upon value – a mutual decision between you and the insurer as to what the car is worth. This is what they will compensate you with, should the car be totaled or stolen.
And Ferrari’s do get stolen.
Organized car theft rings are on the rise. They’re cruising around upscale residential areas, looking for any chance they have. Both open and gated communities are targets.
One man’s prized $700,000 white Ferrari was pilfered right from his driveway.
These robbers are armed and dangerous. When Tampa police pursued and boxed in a stolen Ferrari, they discovered a felon with a loaded Glock.
Retrieving a stolen Ferrari can be difficult. Once stolen, your Ferrari can quickly disappear into a global criminal web.
One Ferrari was found 18 years after it was stolen from an Italian hotel. This happened by accident when U.S. Customs officers noticed oddities on the vehicle’s documents. The rightful owner now has to fight to get it back.
Another one was only retrieved 29 years after the theft.
The National Insurance Crime Bureau reported a drastic recent surge in car thefts. Car thefts were declining until 2019. That trend reversed when 2020 hit. Every month has seen an increase, with an overall yearly spike of 9.2%.
This comes at a time when public safety resources are strapped. Hiring private security will protect yourself, your assets, and ensure that you retain possession of your vehicle.
Kidnapping for ransom, extortion, or unlawful detention is an unfortunate risk when traveling internationally.
A few areas are particularly vulnerable, mainly Africa, Asia, and the Middle East. But these threats can still be at play when at home.
Maritime travel, in particular, is extremely risky for high-net-worth individuals and their family members or associates.
Marine kidnap and ransom insurance is often purchased by businesses to protect their executives and families when traveling abroad. Specialized crisis insurance providers will offer vital services like conflict resolution and ransom responses.
They’ll cover the costs to investigate disappearances, find abducted children, fund recuperation expenses, and compensate for lost earnings.
Marine kidnap and ransom insurance will even provide coverage for the costs of rehabbing your public image.
Do you want to go through a hostage situation – even knowing you’ll be financially compensated? Isn’t it better to protect yourself, your loved ones, and anyone you have a duty of care to?
The U.S. Department of State tracks incidents like kidnapping and ransom. Piracy and armed robbery at sea are growing threats.
Corporate crews are particularly vulnerable to maritime attacks and being held for ransom. But any traveler can be targeted by coastal crime, kidnappings, or terrorism.
Beachside vacationers have been killed or held as hostages for extended periods of time.
Extortion crimes have spiked since Covid-19. There’s an unprecedented piracy boom, in a time where the logistics of retrieving or replacing crew members is extremely difficult.
Marine kidnap and ransom insurance is often necessary, but these services kick in after the fact. Security incidents can be prevented from happening altogether.
Your fine art can be insured to cover damages, fire, water, wear and tear, general deterioration, or theft. And you can generally get coverage at a reasonable price.
So, is fine art insurance all you need to protect your asset? Or should you also consider private security?
Well, that depends on how much you actually like the artwork. Would you like to keep it around? Or are you fine with accepting its loss in the case of theft, as long as you’re properly compensated?
If your aim is to preserve your financial interests, keep in mind that your stolen property will actually appreciate while in someone else’s hands.
And fine art insurance doesn’t usually cover any art that’s left your home. If you intend on displaying valuable pieces outside your home or loaning some out, they need security protection.
Artwork is easily stolen and notoriously difficult to recover. Only 1.5% of stolen art cases see the pieces retrieved and the criminals prosecuted.
This is a multi-billion-dollar criminal industry. Some pieces are taken in smash and grabs. Others in intrusive home invasions.
Even thieves find artwork aspirational. Many steal it on a whim or for the thrill of possessing it. Sometimes the art is held for ransom and other times thieves will attempt to extort insurance companies.
Others, like organized crime groups, never intend to resell art to the public. The mafia is known to use fine art for internal payment between families.
Criminals will also hold stolen artwork, then use information about it when they need to negotiate with law enforcement. One Italian crime member traded stolen Van Goghs for a lower drug trafficking sentence.
Police are often too busy to devote resources to stolen artwork. And the FBI only has 20 special agents devoted to art and cultural property crimes.
Fine art insurance can only compensate you for a certain amount. You’ll likely never see the artwork again and won’t see the full appreciated value of your investment.
Proper security actively protects your fine art collection, while insurance only covers the loss value (or partial value).
In reality, you don’t need to choose between hiring private security and buying insurance. That would be like choosing between living a healthy lifestyle or having health insurance.
Personal protection and insurance work hand in hand. You want both.
Marine kidnap and ransom insurance will compensate you for your loss, but it won’t protect you.
Jewely insurance will replace lost items, but you’re likely to never the jewelry again.
Ferrari insurance, Lamborghini insurance…these won’t keep your cars from being stolen.
And fine art insurance will not bring a masterpiece back into your home or business.
Private security actually protects you and your assets from harmful incidents. Insurance shores you up when the unfortunate does occur.
Contracting private security can also help you negotiate lower insurance premiums. Insurance companies like knowing that your property is actively defended.
Professional security lowers your overall risk and removes some of their compensation burden.
Your protection services should be well-informed on how they can help you lower your premiums.
As nice as these financial benefits are, in the end, your personal safety and the safety of your loved ones are more important than reclaiming the value of any possession.
People are often harmed when criminals go after their belongings. Sometimes they’re brutalized on purpose, while others fall victim to errant gunshots or blows.
Sure, maybe you’ll get lucky and be targeted by the young, 14-year-old kid. The one who’s just a little too impulsive, in way over his head, and who can easily be talked down.
But maybe you won’t.
Human life is priceless. No insurance claim will ever make up for the loss of your life or the life of a loved one. Not to mention the psychological impact of a life-threatening event.
Private security does more than protect your personal items. It also protects your physical safety and life, giving you peace of mind.
Don’t leave your safety at the mercy of criminal elements. Give us a call to talk to us about securing your assets, your family, and yourself.
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