Beware of Hidden Insurance Risks for Small-Business Clients
thinkadvisor | November 28, 2018
Successful small business owners can be among a financial advisor’s best clients. Not only do these professionals often enjoy high incomes that fund sizeable personal investment portfolios, they also may rely on their advisor to provide other investment-related services, such as retirement plan advice. While a small business owner’s personal holdings and business assets often are separated by the legal walls of the business’s limited-liability status, there is no doubt that owners often think of their personal and business wealth as one big pool. This mindset, and the potential for a large personal property or casualty loss to prompt a business owner to tap company assets, creates the potential for an unexpected change of circumstances to a client’s wealth and to an advisor’s assets under management.