Prevent clients from being their own worst vacation enemies
Vacation Risks Revisited: As your clients prepare for the summer travel season, here’s what you need to know in order to protect them.
The most popular form of entertainment for high-net-worth clients is travel, especially after they stop working. No matter where they go, however, travel includes some element of risk. Although most associate that risk with violence, travelers are much more likely to run into exposures of their own making — whether it’s an unexpected issue back home or unknowingly exposing personally identifiable information.
Vacation hot spots
If your clients could go anywhere in the world, do you know where they would go? And how they would get there — by plane, tour bus or cruise ship?
According to AirBnB, global hot spots like Paris and Tokyo remain popular destinations, but travelers are increasingly choosing off-the-beaten path destinations as their vacations of choice. Some are traveling with well-established tour companies but others are venturing off on their own or with more local, less-well-known groups.
Bookings are up by more than 250% in Da Nang, Vietnam, for example, as well as more than 200% in Matinhos and Guarapari, Brazil, and 175% in Zagreb, Croatia.
As your clients prepare for the summer travel season, here’s what you need to know in order to protect them.
Out of sight, not out of mind
When on vacation, the worries of everyday life should be far away. Nevertheless, failure to take certain actions before departure can end up hitting clients like a literal beach wave.
According to a 2017 study by Chubb on home protection behaviors, the majority of Americans lock their windows (85%) and deadbolt their doors (77%) before heading out on vacation. Just 22%, on the other hand, shut off the water main.
Why does this matter? Many clients incorrectly assume that theft is the most common and costliest form of property damage, especially while their homes are sitting empty. It’s neither. Water leaks should instead be their primary concern as data from the Insurance Information Institute suggests that water leaks occur four times more frequently than theft claims. Additionally, the same data shows an average water-related loss costs more than $8,800, as compared to $3,990 for theft.
More concerning is the fact that the time between when a leak occurs and when it’s discovered directly impacts the severity of water damage. For clients on vacation — even for a long weekend — this makes them vulnerable.
So how can you help your clients keep their everyday worries at bay while on vacation? Here are some tips:
- Insist that they turn off their main water supply before traveling.
- Advise they check for any leaks prior to departure.
- Encourage them to ask a trusted neighbor or friend to stay or check in on their home while away.
- Counsel them to install a water shut-off device, if one isn’t already in place. If it is, remind clients to replace all batteries and set the device to “away mode” before leaving.
Handle with care
Although agents and brokers should always advise that clients leave their jewelry at home, there are ways to help keep valuables safe(ish). Start by ensuring your clients have worldwide coverage for valuable articles and no deductibles for most causes of loss. This assumes they’ve already taken the important step of purchasing a valuable articles policy, as opposed to solely relying on their homeowners’ policy, which often has a $5,000 cap on valuables.
Beyond ensuring they have the right policy in place, the safety and security of valuable items is largely dependent on client behavior. In other words, help them make smart choices. Clients should never pack their jewelry in checked luggage, for instance. Instead, they should keep it in a carryon — ideally one that they will have on them the whole flight.
Upon arrival, encourage your clients to keep their jewelry in the hotel’s main safe. Individual room safes are easily accessible to hotel employees and codes can be overridden. Jewelry should remain in the hotel’s main safe unless clients are physically wearing it. That means no putting it by the nightstand and returning it to the safe in the morning. While it should go without saying, remind clients that they should avoid heading to the beach or pool when wearing their jewelry.
Live in the moment
Clients might want to share pictures of the historical landmarks they’re visiting or white sand beaches they’re relaxing on, but posting to Facebook, Twitter, Instagram or another social media site puts them at risk.
The concern is three-fold. First, they’re alerting local thieves who might be monitoring popular hashtags or location “check-ins” on social media that naïve tourists are nearby. Potentially more concerning, however, is that it could alert criminals back home that their property is vacant. (Even though I mentioned water leaks are more common than theft above, this behavior could certainly tip the scale!)
Finally, if a client uses an unsecure Wi-Fi network, which are common at hotels, bars, restaurants and other tourist destinations abroad, hackers can gain access to a treasure trove of personal information. Reminding your clients that vacation is a time to relax and subsequently “unplug” is the best thing you can do to help keep them safe.
The concern doesn’t end when clients power down their smartphones, unfortunately. Payments and cash withdrawals also present ripe opportunity for identity thieves.
Whenever possible, encourage your clients to pay for vacation purchases, including meals, lodging and excursions, with cash they brought from home. If they must pay with a card, credit cards are preferable to debit cards, as the latter link directly to client bank accounts.
As clients prepare to make the most of summer travel, don’t let an unexpected accident or mistake detour their plans. Take these steps ahead of time and you’ll ensure that your clients do what they’re looking forward to most — relaxing.
Annmarie Camp (Annmarie.Camp@chubb.com) is executive vice president, sales and distribution leader at Chubb Personal Risk Services.
See also:
6 scenarios that travel insurance won’t cover