Introduction The purpose of the following article is to provide a clear understanding of types of insurance policies and coverages. We will cover all the basic details about this topic so that you can understand what is actually covered by different kinds of insurance policies. If you think your business has no need for these insurance policies, here are some things that might be useful for you : You want to protect your assets from theft or any other damage
You want to protect yourself from lawsuits if the company fails to fulfill its contractual obligations
You want to protect your property from vandalism if someone damages it
You want to protect your customers’ personal data if there are certain malicious activities on your website
You want to protect your employees against accidents if they work at night or when the employer is away from home
You cover your property against vandalism if people damage or destroy it in public places like parks and beaches.
You want to protect people who use machinery or tools at their workplace, You also have the right to receive compensation if your equipment isn’t delivered on time.
, You also have the right to receive compensation if your equipment isn’t delivered on time. You have rights against someone breaching your contract with another party. It can also protect your reputation because of fraudulent actions and misbehaviors if the accused person is using false information to deceive you. This policy covers such cases as negligence, fraud, misrepresentation, abuse of power, misuse of authority and defamation. If you don’t have enough protection against risks, your company could suffer a loss. There is only one thing that would make life easier for everyone. That thing is insurance. But before we start discussing that topic, let us take a look at the three primary types of insurance. When choosing an insurance policy, you should first determine whether the business needs individual liability insurance, professional liability insurance, property coverage or workers’ compensation insurance. Then choose the type of policy most suitable for the nature of your business. Read More »
Types of Insurance Auto Insurance Comprehensive General Liability Property / Personal Safety Workers’ Compensation Commercial Property (auto) Premises (auto) Professional Liability Life Insurance Health Insurance Homeowners/ condo Insurance Umbrella Protection Term / Whole Policy Other Insurance
Auto insurance Auto insurance provides basic coverage for car repair, comprehensive policies that provides additional protection for injury and liability claims. For example, auto insurance pays out up to $5 million if you’re involved in an accident. If you have a car accident, you may file a claim against the manufacturer for compensation. Comprehensive auto insurance protects you both physically and financially if you own a vehicle that is damaged beyond repair. This kind of insurance pays more than personal auto insurance, but it cannot replace your vehicle if it gets stolen or vandalized.
Comprehensive auto insurance also offers optional riders, which is when you agree to pay on behalf of others for medical payments or car repairs, among other benefits. Some companies charge extra for this option, while others can offer lower premiums and rates. You may also be required to purchase “in-custody” insurance if you are not operating your vehicle anywhere else. Check your state’s laws on how you can get coverage if you leave your vehicle unlocked, or if you own an automobile that you do not regularly drive. Coverage options include car collision coverage, liability coverage, renters’ insurance, umbrella coverage and roadside assistance. You may be able to secure discounts and payment plans if you shop around for the best price. An important benefit of comprehensive auto insurance is that it does not matter where you crash! When you have comprehensive auto insurance, there will be no deductible. However, in states where the minimum deductible is $1,000, you will still be responsible for paying the cost of your own medical expenses. If you do not want to wait until the full amount is paid when filing a claim, consider purchasing an annual renewal plan. It enables you to keep the same amount of money you initially paid until the costs exceed the limit. The average annual premium for comprehensive auto insurance is 8 percent higher than the overall average.
If your policy includes mandatory medical payments or roadside assistance, you must pay either part of the total cost of the service, or the cost you pay for the service itself. Your provider should know how much you need to contribute toward these services. So if you receive emergency medical treatment while driving, you may have to pay $100 per incident. In addition, if you incur injuries while working on your job, you may have to pay a dollar-for-dollar increase in your paycheck from each day you continue to work even though you are injured. You will have to pay into a savings account to maintain your coverage, and if your policy includes voluntary benefits like dental, vision or hearing, you must pay those out of pocket. Paying for doctor visits, ambulance rides and ER stays are optional extras. Many coverage policies also allow you to add an umbrella policy to your auto policy for increased protection during events like hurricanes, firestorms or earthquakes. As mentioned above, home owners have two types of insurance – homeowners insurance or condos that you purchase separately, and condo insurance that can be added to your homeowner’s or condominium’s policies. These types of insurance have limitations on the number of claims you can file and the frequency of damages that you can receive. Usually, homeowner’s policies typically offer more coverage than condo policies. In fact, in every 50,000 homes in the US, there are 25 percent fewer home insurance policies than condo policies. Condo policies may be cheaper overall because you pay less for them if you’re buying from a single vendor like Nationwide. However, condo and owner policies will not provide coverage for third parties or your contents. Keep in mind that your landlord could cancel your condo policy for various reasons. Most condo policies are written so that if you leave the home without permission for 30 days, the monthly rent will immediately go up. So, even if you are temporarily unemployed, you will have to pay all ongoing fees. Also, most condo policies do not come with renters’ insurance and water.
Some common types of auto insurance, and what they really mean to you, are : Individual liability insurance covers the legal liability of yourself and others for bodily injury and death. Generally, businesses should opt for liability limits below their financial needs so they can stay within their budget. Businesses that sell vehicles are often subjected to sales tax and state law that requires a sales tax assessment every time a potential buyer buys a used car from a dealer. Businesses that operate without employee auto coverage will face penalties and non-payment of taxes if they fail to comply. This will include fines, license suspension, and even possible jail time. Non-commercial drivers usually qualify for personal injury protection (PIP), which covers medical bills to treat injury caused by a motor vehicle crash, even if the driver was not at fault. PIP insurance typically covers a limit of $3,000 per year if their policy is purchased through the federal government’s Marketplace program, but your coverage may vary based on your state. Another protection you can buy is roadside assistance, which covers the cost of transportation to your nearest hospital or clinic. State regulations govern the maximum level of reimbursement that businesses are permitted to make under their local laws. Federal laws require these reimbursements to be made quickly when you become unable to travel due to sickness or disability. The U.S. Department of Transportation also offers 24 hours of roadside assistance at www.nhss.dot.gov/roadsideassistance. This can also help to prevent accidents that cause serious bodily injury, but it doesn’t cover medical bills or lost wages. Car theft protection refers to a specialized category of auto insurance in which you typically pay more than the actual value to recover your car. While most businesses do not have trouble recovering their cars, if yours is stolen, then the police will return your car and deduct its salvage value from the settlement you receive from the thief. Common examples of theft protection policies are: Motorist’s policy coverage: This is the standard “you pay for what you get” approach. They are designed to cover theft of a car in which your policyholder owns the car or lease the car to another person. Any damage to the car becomes insured against if the thief finds the vehicle even after theft has occurred, but damage to a separate piece of property can be covered by your policy. Vehicle security insurance: Security systems are designed to protect a car from vandalism and theft, particularly if you run a commercial insurance business. Theft of a commercial vehicle is normally covered by a consumer’s policy or business liability coverage. Additional features or upgrades can be included to give you complete peace of mind about being protected from theft. Rental reimbursement insurance: Renters often purchase rental cars based on the length of time they use them for the rest of their lives; however, if they get a flat tire, they will want to hire an experienced mechanic to fix the problem rather than simply replacing the rented car. Owners of rental cars usually have very few liability coverage requirements and few liability limits compared to the renters of ordinary vehicles. Because rental cars do not fall under a fixed deductible, the insurance company should pay the full cost to facilitate the rental process.
Business insurance Business insurance offers policies that protect your entire operation, whether a store or restaurant. Most of the insuring policies are offered by your local bank. Here are some typical areas covered by your business insurance: Equipment and inventory
Supply chain risk
Liability and payroll
Real estate risk Coverages covered by a business’ business insurance include liability (workers’ comp), product warranty, and general liability (car insurance). If the business’ insurance policy fails, your business may end up with hefty fines. Although many employers will not be held legally liable for bad debts, having a business insurance policy in place should.