Friend of mine works in personal insurance for high net worth space. One of the biggest areas of risk is that because a lot of people that have money serve on boards, is they don't carry adequate umbrella insurance coverage. There is insurance for the board, but it caps out which then exposes the board members personally.

Also, claims can be denied if this can be proven to be intentional. You don't get to burn down your house for the insurance money to remodel.