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 |
