The Importance of Protection Planning

Written by Dan Westin. Dan is a Certified Financial Planner and Senior Managing Director of QA’s Wealth Management Team.  He is also a partner in the firm.

An often under-emphasized topic within comprehensive financial planning and wealth management is risk management through appropriately placed insurance, property, and casualty insurance (or “P&C”) in particular. It’s understandable when thinking of wealth-building that one’s focus is on saving and investing to grow assets and net worth. However, it is paramount that individuals protect their assets while on their “wealth journey”, so that any number of unforeseen events or catastrophes do not set them back significantly.  Hence, just as reviewing invested portfolios is central, it is likewise important to review one’s risk management portfolio (i.e., personal insurance program) in a similar manner.

Recent research from Chubb Insurance, the world’s largest publicly traded P&C company found that three-quarters of successful individuals want their P&C needs addressed by their financial advisors, but only 28% currently receive this type of support.*

Here are a few things we encourage our clients to consider regarding their personal insurance program.

P&C Coverage Review

Common findings:

    • Coverage is often poorly placed (i.e., certain assets are over-insured or under-insured)
    • Coverage lacks customization
    • Limitations on certain existing policy coverages were not known
    • A lack of awareness about certain important types of coverage like:
        • Identity theft (cyber risk protection)
        • Not-for-Profit Directors & Officers Liability
        • Employment Practices Liability for Domestic Staff
        • Travel Insurance (medical evacuation insurance)
        • Valuables/collectables coverage
        • Other physical structures are not insured (like a detached garage, swimming pool, driveways, fences)
    • Opportunities for savings are overlooked:
        • Deductibles are often set too low
        • Package discounts not considered/utilized
        • Loss prevention credits not contemplated/included

A successful wealth journey includes properly insuring what you are building along the way, so it’s vital to review and optimize your personal insurance program just as you would your investment portfolio. Let us know if we can help you take the next step to reviewing your plan with a licensed professional P&C agent.

Note:  While QA does not sell insurance, we do advise clients regularly on how to build protection into their financial plans.


* Chubb and Oliver Wyman research paper, “The Overlooked Gap in Financial Advice,”