Why I'm Using Client Questionnaires on P&C Coverage

In a recent post I discussed how financial planners should consider looking into a client’s property and casualty insurance coverage. From the comments made on my recent post–most from practitioners who engage in this type of analysis, it seemed probable that most planners ignore this area when constructing financial plans. However, without properly analyzing these issues, gaps in coverage may result.

When I made that post, I was working to complete my continuing education requirement and this was one of the topics in the material. Years ago, when I was studying to earn my CFP, this was also discussed in the text but the material was so broad, and since I did not have a P&C background, I promptly forgot about it. However, without properly analyzing these issues, gaps in coverage may result.

Consider the wealthy professional or entrepreneur who is underinsured in the liability area. They cause physical or financial harm to one of their clients and with our litigious society, they are sued and it costs them dearly. If we were managing their financial assets, we may have witnessed a major outflow. Since we try and protect our client’s wealth from market downturns, why leave this critical area unattended? Here’s what I am doing about it.