9 surprising facts about insurance I didn’t know about before
Hi! I am Luqi, and I am here from Feb and currently in a 6-month internship at Services Family Ltd. I came here knowing a lot about finance (as I am studying finance at university in London) but actually, very little about insurance or start-ups. Before this, I thought insurance was boring and uninteresting. But the fact is, it’s something we all have in our lives, I thought I would share with you what I have learned in this quick and hopefully very useful post!
- Risk Management
Insurance is one of the most effective risk management tools. All companies and people need insurance, even if they are strong and healthy. By the way, anything can be insured if you want for a price. See below:
This is a great link to Interesting, weird and quite possibly useless insurance facts – Thank you to Trafalgar International Ltd. Thailand
- Assurance vs Insurance
Assurance is protection for an event that WILL happen, like death in life assurance, but insurance is used to protect something MIGHT happen, like an injury at work. It is because long term life insurance will pay out on death that it is called assurance. Short term you can still get life insurance for a period or activity, usually as part of accident insurance.
- Legal Responsibility
All companies have a legal responsibility for their customers, and if they fall short, for example if they miss a deadline or requirements which result in financial loss. Therefore, the company should have “professional liability insurance” or public liability insurance, depending on what sort of business they do. If they are mainly offering expertise and advice (like lawyers, architects and accountants) then they need professional liability
In fact, all employers must pay employment liability to their employees by law (except freelancers and sub-contractors).
- Insurance Coverage
Most personal insurance does not cover your business liability or property loss. This is one of the reasons that the companies need the general liability insurance which not only includes your possessions, also includes employees’ mistakes and claims.
- Insurance Package
You can choose ‘modules’ like equipment/tools and personal accident insurance within your business insurance package. And all would be considered in your insurance premium.
- Insurance Premium
The insurance pricing not only depends on business trading, but also takes into account the company size, trading location and regulations.
Particularly, the insured must state the truth and be honest when obtaining insurance.
- Company credit
A company’s credit rating is a key factor of insurance pricing. For example, if no claim happened during the past several years, it will increase company’s credit and therefore reduce the insurance premium.
Make sure your insurance covers the event and, keep all correspondence such as oral and written conversations which are associated with the claim.
- Always update your insurance contract
The cover you need will change as your business or personal circumstances change and so must your insurance cover. Your insurance cover is a key to protecting yourself against financial loss, even though no one wants to use it.
And remember! Always ‘shop’ around to get the best deal because it can save you money while getting the same cover.