Insurance is a type of risk management used to evade against the
threat of a possible loss due to unforeseen circumstances. Payment
of an insurance plan for a particular property or asset entitles the
insurance holder to avail of a replacement or payment should there
be any loss or accidents. Insurance can be applied to a person,
property or other types of assets.
Today, there are many types of insurance. Basically, anything
that can be quantified can be insured. The specific types of risks
that may result to claims are called perils. The insurance policy
contains details of perils which are covered by the policy.
It is important to understand the different types of insurances
available. One of this is the business insurance. This is intended
to protect business owners. The most common business insurances
include professional indemnity insurance and professional liability
Auto insurance is intended to protect a car owner of any
financial losses due to accident. With auto insurance, you pay the
premium to your insurance company and they will take care of any
expenses incurred should there be any accidents or theft. An auto
insurance policy may cover property coverage due to damage or theft,
cover property and injuries of others and sometimes cover full
coverage of treatment, rehabilitation and funeral expenses. Auto
insurance policy requires to be renewed on a specified time
depending on the existing laws of your country.
For homeowners, a home insurance is available. This includes
compensation for any damages to a home from any man made or natural
disasters. However in some countries, natural disasters such as
earthquakes and floods are not covered by any insurance policy.
Health insurance is one of the most popular types of insurance.
Many companies offer health insurance as part of the benefit for
their employees. Health insurance policy covers hospitalization,
disability, funeral, rehabilitation, etc.
Life insurance is another type of insurance intended for a
specific person such as family members. This insurance provides cash
benefit to the beneficiary of a policyholder. This may also include
payment for burial or funeral expenses.
One of the most common insurance is the property insurance. This
is intended to provide protection for any property such as natural
calamities, theft, fire and other incidents that may cause
Liability insurance is another type of insurance that is usually
intended to protect a policyholder from any legal claims. This
covers two important protections which include legal defense or
payment of settlement arising from a lawsuit filed against the
There are many more insurances available and you have a wide
variety of choices. Getting an insurance policy for your assets,
yourself or a family member can be a good investment. We can never
tell when accidents or untoward incidents happen. It is better that
we are protected than losing everything we get because of disasters
or incidents. Just make sure to get your policy to a recognized
insurance company. This is to ensure that your claims are backed up
when such incidents happen.