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Case Study: Perfume Distributor

You know you need Exceptional Risk Advisors when...

Your Perfume Distributor Client Has A Policy That Totally Reeks!

Advisor challenge

A popular perfume distribution organization's, 32 year old actress, spokes model and partial owner was preparing for her next big studio production. The production called for the actress to perform her own stunts; and as the face of company's most successful perfume line, the perfume distributor became deeply concerned for the risk their icon was exposed to.

With $25M of Key Person Life Insurance in-force on the celebrity, the organization was looking to secure equivalent Key Person Disability insurance.

Solution

Exceptional Risk Advisors constructed a $25M contract for Key Person Disability coverage. The policy was designed to pay a lump sum benefit of $25M to the company after a 12 month elimination period.

Case Study: Plastic Surgeon Needs Insurance Makeover

You know you need Exceptional Risk Advisors when...

Your Plastic Surgeon Client Needs An Insurance Makeover!

Advisor challenge

Working with a major plastic surgery center, an advisor out of Southern California brought us a unique risk that was of concern to the facility. The 45 year old private practice plastic surgeon, sole proprietor and lead surgeon employed a staff of 10 in his 2 Los Angeles offices. Each month, Dr. McDreamy had fixed operating costs exceeding $125,000.

In the event an unexpected accident or illness occurs, affecting the surgeon, the office would require Business Overhead Expense coverage in the amount of $125,000 per month to keep the office running.

Solution

To design a BOE program that would pay $125,000 per month for 24 months in the event of a disability to the surgeon, the advisor turned to Exceptional Risk Advisors. The 24 month benefit would allow the surgeon to pay his employees, vendors, and bills while disabled and unable to generate revenue. This time would also enable the surgeon to effectively transition his practice to another practitioner if need be.

Case Study: Voice Over Professional

You know you need Exceptional Risk Advisors when...

Your Client Has No Voice In The Matter, They Need Coverage!

Advisor challenge

An advisor out of Beverly Hills, California presented us with a voice-over professional who recently purchased an expensive home in Malibu. The 35 year old earned $2M per year. To protect the client in the event she became disabled and could no longer make her mortgage payments, her advisor recommended that she secure appropriate disability protection.

Solution

As a Lloyd's of London coverholder, Exceptional Risk Advisors created a comprehensive policy using an "own occupation" definition of disability and manuscript wording specifically to protect the client's voice. The coverage would pay the client $90,000 per month should she suffer a disability and be unable to fulfill her voice-over duties. The policy will ensure the client is still able to make payments on her new home and maintain her lifestyle despite being unable to work.

Video: Physician Disability Insurance

Are your physician clients under-insured? Is their lifestyle, and possibly their practice, at risk if they were to unexpectedly become disabled? Watch this brief presentation detailing our unique capabilities to protect your client's income at a replacement ratio of up to 60%, about 40% more than traditional insurers can offer.

Case Study: Disability Exposure

You know you need Exceptional Risk Advisors when...

You're Reviewing a Client's Buy-Out Agreement and You Find a Serious Disability Exposure

Advisor challenge

While reviewing the business continuation plan of a social media company worth nearly $130M, an advisor out of New York City identified a serious disability exposure. The company was comprised of fourteen shareholders with equity values ranging from $2M to $28M, none of which were insured with disability buy-out coverage.

With the risk of disability as high as 3.5 times greater than the risk of death during a person’s working years, the shareholders were seeking insurance coverage to mitigate the financial risk of a disability to a shareholder. (Statistics taken from “Unprepared for the Unthinkable”)

Solution

Aware of Exceptional Risk Advisors’ capability to underwrite in excess of $100M per insured, the advisor turned to ERA to create a comprehensive disability program for the partners. Exceptional Risk Advisors designed fourteen custom high limit disability buy-out policies utilizing the medical exams conducted to underwrite the clients’ life insurance.

In the event of an unforeseen disability to a partner, the policies will pay the organization a lump sum benefit after a 12 month elimination period. Placing nearly $130M of disability insurance, the premium generated was just over $650,000 annually – a cost that represents only one half of one percent of the total sum insured.

Video: Golden Gavel Coverage

Watch Exceptional Risk Advisors' brief presentation on our unique, high limit products for any client employed in the Law industry.

Case Study: Merger

You know you need Exceptional Risk Advisors when...

Your Client's Core Growth Strategy Revolves Around Mergers And Acquisitions

Advisor challenge

A $300 million deal is contingent upon securing high limit Key Person death and disability protection for the CEO.

Solution

The advisor turned to Exceptional Risk. Their client, a private equity firm, was adding a new company to their portfolio. The private equity firm felt strongly that the company's CEO was critical to the transition and ongoing success of the business. After thoroughly quantifying the potential impact of the loss of the CEO, a requirement for $20 million of Key Person death and disability was established as a condition of the deal.

The time frame was tight. So we bound $20 million of Interim Gap insurance covering death for a 60-day period. A $20 million lump sum Key Person Disability policy with a pre-existing condition exclusion was also written. Full coverage was afforded once the CEO's physical exam was completed and reviewed.

Video: Entertainer Personal Income Protection

Need to insure an award-winning actor, high level producer, or Billboard 100 musician? Watch our brief presentation to learn how Exceptional Risk Advisors can secure "rock star" disability coverage for your most exceptional clients.

Case Study: $60 Million Exposure

You know you need Exceptional Risk Advisors when...

You're Working With A $60 Million Company With A Large Disability Exposure

Advisor challenge

Provide a large, privately-held public relations firm with disability protection for 32 partners with equity values ranging from $200,000 to more than $20 million.

Solution

We worked with the advisor to develop a custom solution that would meet their client's needs. Through a series of underwriting concessions and modifications, we created a program that included minimal underwriting for the smaller policies. The combined annual premium to fund nearly $60 million in disability benefits was approximately $525,000.

Case Study: High Limit Disability

You know you need Exceptional Risk Advisors when...

When Your Client's Annual Income Has More Digits Than His Phone Number

Advisor challenge

Secure additional disability income protection on three young investment managers - each with an eight-figure income; all employed by the same firm.

Solution

The advisor turned to Exceptional Risk. While the execs were in their 30's, the advisor's client was keenly aware of the potentially devastating impact of a disability - having experienced it with one of their young general partners. We designed a program that gave each of the execs $250,000 in monthly disability income benefits with an additional $15,000,000 payable in the event of a career ending disability.

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