High-net-worth families often assume that serious security threats are rare or limited to public figures. Unfortunately, history—and recent headlines—tell a different story.
When I was growing up, I vividly remember watching a popular variety show hosted by Jackie Gleason. One evening, just as he delivered his famous line, “How sweet it is!”, a powerful explosion shook our home. A bomb had been detonated under our family car, parked outside. Thankfully, no one was physically injured.
The attack was tied to a labor dispute involving my family’s business. Beyond the bombing itself, our family endured threats against my father and even kidnapping threats directed at my mother and us children. Law enforcement provided temporary protection. We installed a burglar alarm, and my father began carrying a weapon. Although the immediate danger passed, the experience left a lasting impression on me about how quickly circumstances can change—and how important proactive security truly is.
Today, the risk landscape is even more complex. With a few clicks online, anyone can often uncover home addresses, property holdings, estimated net worth, and even details about family members. High visibility, real or perceived wealth, and public exposure can make families targets for extortion, harassment, theft, cybercrime, and in extreme cases, kidnapping.
For families of significant means, security is not a luxury, it is a critical component of risk management.
Domestic Staff: A Unique Area of Exposure
Many families rely on trusted domestic staff—nannies, estate managers, housekeepers, drivers, personal assistants, and groundskeepers. These individuals often have direct access to residences, daily routines, children, travel plans, and financial information. While most employees are loyal and professional, risk exposure is real and must be managed thoughtfully. Treat household employment with the same rigor as corporate hiring.
Best practices include:
- Comprehensive background checks, including criminal history, driving records, and professional references
- Clear employment agreements and an employee handbook outlining expectations, confidentiality, conduct standards, and policies. While not all family employers will want a true “handbook”, having a simple “expectations agreement” will help cover many issues that can later arise to disrupt the relationship. These agreements establish enforceable expectations and reduces ambiguity that often fuels disputes or security lapses.
- Proper worker classification (employee vs. independent contractor) to avoid tax and labor law liability
- Workers’ Compensation coverage for household employees
- Verification that true contractors carry their own Workers’ Compensation and liability insurance
- Separation of HR Authority & Personal Relationships
- Avoid informal management structures where personal relationships override policy enforcement.
- Designate a trusted advisor (family office, attorney, HR consultant) to handle sensitive employment matters.
- Blurred boundaries undermine both accountability and security
- Avoid “convenience creep,” where long‑tenured staff accumulate unnecessary access over time. This type of spillover in which too many people have access to too much information is one of the most common contributors to both accidental and malicious security incidents in small to midsize businesses, and I would expect it would be the same in families.
Misclassification is especially common and can create significant legal and financial exposure. In the event of an injury or dispute, an uninsured or improperly classified worker can result in costly litigation and reputational damage. Fair Labor Standards Act (FLSA) and IRS rules apply to domestic employers as well. In fact, there are some different rules for some domestic employees, so families need to be sure to understand the ins and out.
In addition to employment practices, families should consider Employment Practices Liability Insurance (EPLI) to protect against claims of wrongful termination, discrimination, harassment, or wage disputes—risks that can arise even in private households.
Physical Security: Often Overlooked
Security assessments frequently reveal simple vulnerabilities:
- Alarm systems that are outdated, unmonitored, or rarely activated
- Inadequate perimeter protection- Perimeter security should also encompass regular landscape maintenance to ensure that trees and shrubs do not obstruct windows or doors or create hiding spots for potential intruders
- Uncontrolled access points
- Poor lighting or camera placement
Engaging a qualified security advisor to conduct a comprehensive review of properties can identify improvements that significantly reduce risk. Controlled access through gates, monitored alarm systems, surveillance cameras, panic rooms, and trained security personnel are not excessive measures for prominent families—they are prudent safeguards.
Cybersecurity is equally important. Home networks, smart home systems, and personal devices can provide entry points for bad actors seeking financial data or personal information. A coordinated approach between physical and digital security is essential.
Specialty Insurance: Protecting Against Severe but Real Risks
Beyond traditional homeowners and umbrella policies, high-net-worth families should consider specialty coverages designed to address their unique exposures.
Kidnap & Ransom (K&R) Insurance
This coverage is often misunderstood. It does not only apply to international travel or extreme circumstances. K&R policies can cover:
Ransom payments
Extortion threats
Crisis response services
Negotiation specialists
Legal and public relations expenses
Medical and psychiatric care following an incident
Just as important as financial coverage is access to experienced crisis response teams who guide families through highly sensitive situations.
Excess Liability (Umbrella) Coverage
Higher liability limits are essential for families with significant assets, multiple residences, watercraft, aircraft, or frequent entertaining.
Cyber Liability Insurance
Protects against data breaches, ransomware, identity theft, and cyber extortion.
Directors & Officers (D&O) Insurance
For family members serving on boards, whether public, private, or philanthropic.
Fiduciary Liability Insurance
Important for trustees and family members overseeing trusts and estates.
High-Value Home and Collections Coverage
Ensures fine art, jewelry, collectibles, and specialty assets are properly appraised and insured.
A Holistic Approach to Risk Management
Security planning for high-net-worth families must be proactive, layered, and coordinated across advisors—legal, insurance, tax, and security professionals. The goal is not to live in fear, but to reduce vulnerabilities before they are exploited.
My childhood experience underscored a simple truth: risk often appears without warning. While we cannot predict every threat, we can prepare thoughtfully and thoroughly.
For families of substantial means, comprehensive security protocols and properly structured insurance coverage are not optional—they are foundational to preserving both financial assets and personal safety.