Offshore Asset Protection Or Insurance?


The way most people protect their assets, is by using insurance. It is recommended to have some kind of insurance in place, especially to pay for your legal defense during a lawsuit. But your policy does have exclusions, under certain circumstances you don’t have any coverage.

It can feel comfortable to believe, and convince yourself that you will always be insured. You might have very specific coverage, from a company with a good track record. Or a very broad policy, with a significant amount that can be covered.

Offshore Asset Protection Or Insurance - Infographic

However the truth is at some point you can run into a policy exclusion.

Insurance that covers only certain parts of your business or personal life, won’t help you in other situations.

If you on the other hand have very broad coverage, don’t expect that it will help you stay completely out of legal trouble. You might be eligible for a payout of up to $1 million, $10 million or more, but that doesn’t mean anything if in the end your insurance won’t hold up.

The main reason and advantage of establishing an offshore trust, is to protect you in case of a policy exclusion.

Imagine you are in a trial, everything has gone well so far, but then the judgement comes, and you are ordered to hand over your assets. You are confident that your insurance will take care of the whole situation, but for some reason you can’t understand, you are denied compensation. In that scenario, wouldn’t it be a good idea for you to already have done offshore asset protection?

There are of course setup costs associated with forming a structure offshore. But in the long run, it’s hardly an expense you need to think of, once you only need to pay annual maintenance fees for your trust.

Should you choose between offshore asset protection or insurance? I would say it’s best to do both, better safe than sorry.

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About The Author


Fredrik helps high net worth individuals with creating international asset protection strategies. To keep anything from currency, real estate, precious metals and any other kind of investment protected from an unexpected lawsuit.