- Q: What is Insurance?
A: Insurance is a protection for your future. Insurance offers coverage for any unexpected financial losses that could jeopardize you or your property anytime. In return, you pay insurer or insurance company a sum of money, popular as premium, at a decided rate according to the degree of risk. Insurance helps you live a secure life, free from financial worries that could arise due to any disastrous occurrence.
- Q: What is an Insurance Policy?
A: Insurance policy is a specific plan offered by insurance company to cover your risk. An insurance policy is a legal agreement between you and the insurance company. This agreement highlights that insurance company agrees to provide you specific protection from definite peril or disastrous event in return for regular payment of decided amount of premiums. Every risk has different insurance plans or policies with differential coverage, premiums, and other benefits.
- Q: What are the Different Types of insurance?
A: Insurance offers coverage for any risk that can be classified into a measurable quantity. Risk in insurance means factors that prove dangerous like fire, windstorms, hail, theft, vandalism, flood, earthquake, and riots. Accordingly, there are different types of insurance like life insurance, health insurance, automobile insurance, fire insurance, disability insurance, liability insurance, marine insurance, professional indemnity insurance, property insurance, pet insurance, travel insurance, worker's compensation insurance, and many others.
- Q: What are the Principles of Insurance?
A: Insurance companies function on the simple basis that losses cause financial problems and therefore, people choose to transfer the risk on some reliable shoulders. Insurance companies are able to calculate risks involved in financial terms and charge such sums as a premium for guaranteeing protection on occurrence of the event. Nevertheless, insurance companies provide only for accidental losses and those that are not overtly catastrophic.
- Q: How do I know a good insurance company from a bad insurance company?
A: There are specific rating agencies like Standard and Poor's that offer useful guidance to choose and select a good insurance company. These agencies display all financial records and customer service details with relevant statistics of different insurance providers. Additionally, state insurance commission also provides necessary details at their web site. Go through these before making your choice of insurance provider.
- Q: How do I Choose a Business Insurance Agent?
A: Business insurance agent advises you on how to safeguard your business interests from any losses. Choose a licensed and experienced agent preferably with various professional affiliations. Your agent should be easily accessible always and should provide exemplary client service. Choose between a captive and independent agent for your business insurance requirements. Captive agent sells insurance of specific company while independent agent sells insurance of different companies.
- Q: What is difference between my agent, the insurance company, and an adjuster?
A: Your agent is your representative and deals with insurer on your behalf. Insurance company is the party underwriting your insurance policy according to decided and accepted terms and conditions. It agrees to pay your claims if need arises. An adjuster is an employee of the insurance company responsible for settlement of claims according to insurance company's provisions.
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