TRAVEL POLICIES
Back to GlossaryDefinition
Are for families may include having specific requirements for what modes of transportation (private aviation vs. commercial) are acceptable for different travel purposes. Some families, for example, will not allow two trustees or key owners to fly together due to key person risk as a policy.
Summary
Travel policies for wealthy families are formal guidelines that govern how family members, trustees, and key business leaders can travel. These policies are primarily designed to manage 'key person risk' - the potential financial and operational damage that could occur if important family members or business leaders were injured or killed in the same accident. Common restrictions include prohibiting multiple trustees from flying together, requiring certain family members to use commercial rather than private aviation, or mandating specific security protocols for high-risk destinations.
Usage Context
This term becomes important when studying family office governance, wealth preservation strategies, and risk management frameworks for high-net-worth families. It's particularly relevant in discussions about protecting family wealth across generations and ensuring business continuity.
Common Confusions
- Thinking travel policies are about luxury preferences rather than risk management
- Confusing personal travel restrictions with business travel policies
- Assuming all family members have the same travel restrictions regardless of their role
- Believing these policies are primarily about cost control rather than risk mitigation
