What is the main purpose of insurance

Insurance Terms that you need to know

INSURED - A person or a corporation who contracts for an insurance policy that indemnifies

(protects) him against loss or damage to property or, in the case of a liability policy, defend him

against a claim from a third party.

NAMED INSURED - Any person, firm or corporation specifically designated by name as an

insured(s) in a policy as distinguished from others who, though unnamed, are protected under

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Insurance and it’s connection with your finance

According to law and economics insurance is a type of risk management principally exercised to

circumvent the risk of potential loss. A company selling the insurance is called insurer. It has

become a lucrative business around the globe. Insurance rates, which are used to determine

the amount of premium, may vary from company to company. An uncomplicated example is life

insurance. A person pays a certain amount of premiums to the insurer. When he dies a

predefined amount is given to his family.

Types of Insurance

Nothing is predictable on this dangerous planet. Any accident can happen or any disease can

attack us. So, we should be prepared for it. There are various types of insurance policies

focusing different fields of life.

Business owners’ insurances

T he importance of insurance cannot be over-emphasized and neither can the danger of paying

for insurance you don't need. It is strongly recommended you solicit the advice of an

in-dependent business insurance agent. Don't forget to SHOP! Talk to three or four independent

agents and compare notes and prices. An insurance agent will lay out a vast array of insurance

coverage much of which you simply may not need. Your situation will be unique and you must

consider each insurance element carefully to ensure comprehensive coverage.

Whatever your final insurance program looks like, you should review it at least every six months.

Your business can change rapidly, especially in the first few years and insurance needs change

with it. Keep your program up to date by calling in your agent and reviewing your coverage.

Make changes where necessary.

INSURANCE PLAN CHECKLIST:

o Employ an independent insurance agent rather than going to individual insurance companies.

Ensure the agent shops for your insurance.

o Talk to and get quotations from at least THREE agents and pick the best one for you.

o Use money saving comprehensive policies, if possible.

o Perform periodic (every 6-months) reviews of your insurance program.

o Have business assets professionally appraised to determine coverage needs.

o Ensure existing personal insurance coverage includes business-related activities and add

riders as necessary or obtain additional coverage.

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What is the main purpose of insurance