Critical Gap
Disability Income — Group Cap vs. Executive Compensation
Corporate disability plans cap benefits at fixed monthly amounts — typically $10,000-$20,000 per month — that reflect the needs of the median employee, not a senior executive. For executives whose total compensation includes substantial bonus and equity components, the gap between what group disability pays and actual income replacement needs can be $100,000 or more annually.
What you actually needAn individual own-occupation disability policy with benefit amounts that reflect actual total compensation — base, bonus, and equity income where applicable.
Critical Gap
Personal Umbrella — Undersized for Executive Liability Profile
Corporate executives are community figures, perceived as high-net-worth individuals, and are more frequently targeted in personal liability litigation. A $1M umbrella that was set up before a career reached senior levels is inadequate for an executive with a $400,000+ income, a high-value home, and significant personal assets.
What you actually needPersonal umbrella reviewed annually against current income and total asset exposure. $3M-$5M is appropriate for most senior executives.
Important Gap
Board Service and Personal D&O Gap
Executives who serve on corporate or nonprofit boards outside their primary employer carry D&O exposure that may fall between their employer's D&O policy and their personal umbrella. This gap is often invisible until a claim makes it apparent.
What you actually needAudit all board and governance roles annually. Confirm D&O coverage for each board and verify that personal umbrella addresses any exposure that falls outside formal D&O protection.
Important Gap
High-Value Home Underinsured at Market Value
Executives who own luxury homes in Wayzata, Edina, North Oaks, or other premium Twin Cities markets frequently have policies written at market value. The custom features, premium finishes, and quality construction in these homes cost significantly more to rebuild than standard replacement cost formulas estimate.
What you actually needProfessional replacement cost appraisal on any home above $800,000 in value, updated every 3-5 years. Request an extended replacement cost endorsement for additional protection.
Important Gap
Equity Compensation — Life Insurance Not Sized to Total Value
Executives with significant unvested equity — RSUs, stock options, long-term incentive plans — have total compensation that substantially exceeds base salary. Life insurance sized to base salary leaves a family without coverage for the income stream represented by future equity vesting.
What you actually needLife insurance needs analysis that accounts for total compensation including equity, outstanding mortgage and debt, and any retirement income gap that life insurance should address.
Important Gap
High-Value Personal Property — Standard Sub-Limits Apply
Senior executives frequently accumulate personal property that standard homeowners policies sub-limit — jewelry, art collections, wine, antiques, collectibles. A standard policy may provide $5,000 in jewelry coverage for a collection worth $60,000. This gap is discovered at claim time.
What you actually needSchedule high-value personal property items individually, with professional appraisals for items above $10,000 in value. Standard sub-limits are designed for average households, not executive-level accumulation.
