News Release

New White Paper from ACE Private Risk Services Discusses How the Wealthy Can Avoid Entrusting Their Family, Home, and Financial Well-Being to the Wrong People
Sep 3, 2009

PHILADELPHIA--(BUSINESS WIRE)--ACE Private Risk ServicesSM, part of the ACE Group, today released a white paper discussing strategies high net worth individuals can follow to reduce their vulnerability to hiring or employing unscrupulous financial advisors, contractors and domestic staff. In the white paper, Gary Raphael, Senior Vice President, Claims and Risk Consulting, ACE Private Risk Services, draws upon published research and anecdotal evidence indicating that the affluent are more vulnerable to a range of crimes perpetrated by financial advisors, contractors, and domestic employees than average income earners.

“Wealthy people make lucrative targets, and when they share financial and sensitive personal information with an advisor, invite a contractor to work on their home, or trust a nanny with their child, they become vulnerable to a wide range of crimes – from identity fraud and property theft to kidnapping and ransom,” said Mr. Raphael. “It is critical for them to understand the risks and then take action to reduce those risks.”

Among the data Mr. Raphael examines is the pervasiveness of employee theft and fraud and the resulting legal and security issues that may arise from such incidents. According to the Society of Human Resource Management, “approximately 30 percent of employees admit to stealing from their employers.”

Mr. Raphael cites many examples in which people have needlessly become victims because they relied on friends’ recommendations, intuition, and published resumes during the selection process. He lists common sense strategies individuals can use on their own to eliminate some suspicious candidates, but he stresses the need for a professionally conducted background screen before making the final hiring decision. Mr. Raphael underscores the importance of background screening by noting that the ACE Platinum PortfolioSM insurance program offers high net worth clients access to background screening services performed by The Guidry Group, a consultancy specializing in security risk auditing and management.

Even with comprehensive background screening, Mr. Raphael said the risk of misplacing trust remains to a small degree. High net worth families can further protect themselves with specialized insurance coverages. For instance, the ACE Platinum Portfolio program offers a range of coverages, including:

  • Employment Practices Liability for fraudulent sexual harassment or job termination claims filed by an unscrupulous domestic employee
  • Identity Fraud for up to $100,000 of expenses incurred because of fraudulent use of an insured person’s identity
  • Kidnap Expenses for up to $100,000 of expenses for private investigators, attorneys, and lost income if a family member is kidnapped
  • Family Security for expenses and rewards related to home invasion, child abduction, stalking, and more
  • Credit Card/Forgery/Home Banking for protection against the theft or unauthorized use of credit cards, the forgery of checks or negotiable instruments, or the unauthorized use of home computer equipment to conduct personal banking transactions.

The title of the white paper is “Reducing Vulnerability to Crime from Those You Trust: Strategies for the Wealthy.” To access the white paper, please click here. The material presented in the white paper is not intended to provide legal or other expert advice. It is presented for general information only. Readers of this white paper should consult legal or other experts, as applicable, with any questions.

The ACE Platinum Portfolio provides specialized coverage for homes, vacation properties, automobiles, watercraft, jewelry and other valuables, and excess liability protection that in most cases, offers the savings of a package discount and the convenience of one bill. To obtain additional information regarding ACE Private Risk Services, please visit: www.aceprivateriskservices.com. Product highlights are summaries only; please see actual policy for terms and conditions. Products may not be available in all states.

ACE Private Risk Services is the ACE Group’s high-net-worth personal lines business, which provides specialty coverage for homeowners, automobile, recreational marine, umbrella liability and collections insurance for affluent individuals and families. Headed by ACE Limited (NYSE:ACE), the ACE Group’s core operating insurance companies are rated A+ (Superior) by A.M. Best Company and A+ (Strong) by Standard & Poor’s. The ACE Group provides insurance and reinsurance for a diverse group of clients around the world. To learn more about the ACE Group, please visit: www.acelimited.com.

Contact:

ACE Private Risk Services
Carla L. Ferrara, 215-640-4744
Carla.ferrara@acegroup.com