Survey Shows Invisible Risks for Senior Executives
GREENWICH, Conn., July 26, 2011 — A recent survey of more than 200 Chief Executives indicates that third party lawsuits and identity theft are the biggest areas of concern for CEOs. When asked by Chief Executive Group, who conducted the survey, what keeps them up at night, 37% of respondents said being sued by a third party was a "high" or "very high" area of concern, while 57% indicated identity theft as such.
The purpose of the survey was to ascertain senior executives' awareness of business and personal "invisible risks" and measure their risk preparedness. Survey results indicate that while most CEOs surveyed were aware of risks to "hard" assets – homes, cars, boats, jewelry, etc. – many were not aware of the extent of the personal liabilities they face as highly visible and frequently targeted individuals. Most had inadequate insurance protection against associated risks.
"Most CEOs have worked extremely hard for many years, putting enormous effort and energy into building the value of their businesses and accumulating a material level of wealth. Many, however, haven't put nearly enough focus into protecting their wealth," says Wayne Cooper, who oversaw the research. "Comprehensive insurance protection and an adequate and appropriate personal risk management solution are critical to all individuals, but especially those who are successful and have deep pockets."
Other findings show that while significant majorities of CEOs were confident in the levels of insurance coverage obtained for automobiles (95%) and homes (97.5%), only 52.2% were confident that their companies provided them adequate Directors & Officers (D&O) Insurance liability coverage to protect them. A whopping 41% said they weren't sure if the boards on which they serve even have adequate insurance coverage for them.
The survey reveals the need for adequate and more complex insurance strategies and coverage as assets grow and become increasingly valuable. Even those who are low key and don't display their wealth are vulnerable; many are well known in their communities, sit on corporate and non-profit boards and employ people both at work and in their homes – all of which makes them targets for often unjustified litigation.
To receive a copy of the survey and see the results go to: http://chiefexecutive.net/media/ceo-life.html
Contact:
Phillip Wren
203-930-2706
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