Posts tagged ‘Insurance’

September 25th, 2010

Directors and Officers Insurance for a Business

by Edwin Rosenthal

This insurance protects the directors and officers of a company in the event if they are sued for their actions or wrongdoing in connection with a company business. If any business depends on board of directors and officers then that business needs this insurance. Generally, protection is provided by this insurance for claims which are caused by the errors in judgment.

Generally, directors and officers insurance provide coverage for criminal, administrative, civil and regulatory proceedings based on actual or alleged acts, errors, omissions, misstatements, neglect, or breach of duty committed or allegedly committed by a director or officer.

There is a limit in protection of policy of directors and officers insurance. Generally, this insurance is purchased by the company. Some form of coverage is required by the people in these positions to get protection from claims initiated by share holders, customers, regulators, employees and competitors and company itself.

There are some things that are needed to be known to find whether this policy works for you and your business.

Coverage of policy is extended by some of the directors and officers insurance providers to include directors and officers and company as well. Insurance company reduce the officer’s coverage to adjust the business’s general liability, if the company and it’s officers are named in the lawsuit.

A business owner provides coverage for himself, directors, officers, if he has directors and officers insurance policy which contains a shared liability clause.

This directors and officers insurance policy protects the directors and officers and company as well from claims which are caused from employees, clients, share holder, others.

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September 7th, 2010

Role of Insurance in Reducing the Risk

by Debbie Harry

The word insurance came into picture because of the existence of the risks. Risks makes a person timid and dull. So, in those cases insurance will support to safeguard against the risks.

Risks may be of many types. They disturb the normal life of a common person. Some of the risks which are mostly faced by any person are fire, illness, lawsuits, auto accidents etc. They may occur at any place and at any time. These are unexpected twists which change the life of a person.

One cannot say that by using insurance risk will be removed but it will transfer the risk. The insurance will recover you from the financial losses.

Initially, the premium amounts which are paid by the insured for safeguarding against the future consequences will be few and all these premiums will add up into a large pool. When you are in risk these large pool amount will safeguard. Three things will be done with the premium amount by insurance companies. They are : Initially, they use the amount for paying the claims, secondly, they will use it for the expenses of selling and covering insurances and for investing money. All these earnings will reduce the cost of the insurance.

If you are in risk, then the insurance company, will cover you in loss. Suppose if you get involved in the activity which is type of risk. Then in those cases, the insurance company will check for the statistics of the activity and will cover by calculating the amount of risk involved.

The insurance company has also the ability to pay the amount for large single risks like permanent disability of a person etc. Many people will be buying insurance than the people who are getting their claims solved. So, insurance company has the ability to solve any problem.

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August 25th, 2010

How To Choose Business Insurance?

by Edwin Rosenthal

Thinking of insurance is a good idea for dealing with the business risks. But to get a right one, lot of work should be done. Some of the tips for choosing the business insurance are

  • Examine the risks: The insurance companies will evaluate all the risks while issuing policies. The underwriter will determine the premiums according to the risks. They will also confirm whether all the coverages or the portion will be issued to you. The premium and the deductibles will be given in the policy. The premium is the cost you pay for the insurance coverage. Various factors like business location,building types, protection services, amount of purchase of insurance etc., will influence the premium cost. Deductibles are the amounts which you should pay, while making the claim. The premium will be low, if you pay high deductibles. So, evaluate the risks before shopping for the insurance.
  • Shop around: Select the insurance carefully by shopping around. Select the broker in such a way that he will decide the best policy which you need and the coverage. So, choose the service according to the necessity.
  • Business owner’s policy: As you want to start the business, it is better to purchase the business owner’s policy(BOP) instead of purchasing different policies from different insurers. Buying a separate insurance from each and every insurer, will cost you more. So, go for BOP. In general, BOP includes different insurances like property, general liability, vehicles, business interruptions etc. Before selecting it, make sure that you understand the coverage perfectly. However, unique risks are not covered in this insurance.
  • Agent or broker: Most of the states are providing the information regarding the licensed agents. So, go through the directory for choosing the agents. Always choose a licensed agent. If you go for a broker, choose the commercial insurance broker, who will help you in meeting the needs. He will help you in finding the best coverage according to the risk. But, be careful in finding the best reputable broker.
  • Upgrade the insurance coverage on an annual basis: As soon as you upgrade the equipments or the operations, make sure that you discuss the changes with the broker and extend the coverage according to the need.

These are the different steps to be followed while selecting the Business insurance.

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July 5th, 2010

Know About Building Insurance

by Dov Waxman

For most of the people the most valuable thing will be the property or the building or the place where they live. Regardless of the other insurances, building insurance can’t be avoided. It protects the assets from damage.

Construction insurance northern Ireland protects the property from damage from any unforeseen natural calamities such as floods, storms, earthquakes, robberies etc. One should be aware of all the rules and regulations of the insurance policies. A good building insurance policy, will also cover some extra events like bursting of pipes, aircraft falling on houses, subsidence etc. If a fire disaster occurs, if the building got spoiled then in those cases, for reconstructing or for repairing the building these building insurances are used.

The level of cover for the building will depend on the following factors like:

  • The budget or the amount which you are using.
  • It also depends on the factors like whether the region or the place where the building is constructed is a highly risk zone or the fairly protected zone.
  • The cost of the contents which are used and the even the value of the building.
  • Although one should take enough time to decide the better building insurance policy. Enough research should be done before selecting the level of the cover which you use. Select the best building Building Policy by using the following methods.
  • Before selecting the best insurance policy, ask for the quotes from several insurers for getting the best deal.
  • After getting familiar with the quotes, one has to see what each policy covers and also see whether there are any exclusions.
  • Always be aware of the polices where you get a cheaper amount by paying high amounts as the premium.
  • Also choose the best discounts.
  • Also some polices will give the no claims bonus.
  • These are some of the ways of choosing the best building insurance policy. Apart from all these, the building insurance also covers the interior decorations, permanent fixtures, pipes, drains etc.

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February 8th, 2010

Tips for start up businesses to get business insurance

by Edwin Rosenthal

Business insurance provides insurance solutions to all types of businesses. Business insurance is important specifically for startup businesses, as there is nothing worse than losing the whole thing before you still get started. Any small business with any number of workers should have basic business insurance. Many businesses assume that it is complicated to buy business insurance. It is better to start with three basic business insurances. Those are property insurance, general liability insurance, and workers compensation business insurance.

Property insurance covers the reconstruction of the office building. Also, it gives protection against the risk of office building damages. Property insurance covers the cost of office equipment replacement. Liability insurance covers the damages and injuries that occurred in office hours.

Tips to get business insurance are:

  • Write down clear coverage of insurance requirements by having a detailed discussion with the insurance representative.
  • Do not withhold the information about your business and exposure to loss in front of insurance representative.
  • Get your insurance coverage reassessed on annual basis as your organization expands.
  • Maintain all records of insurance polices, premium paid, and loss recoveries.

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December 28th, 2009

Business Insurance and its Importance

by Dov Waxman

If you have recently started business, your view of insurance may be that it is a luxury, which can be afforded by big, thriving companies to purchase it.

You also feel it is not necessary right now because you have tight cash flows, you have employees to pay, and you need to market your product. So you will be thinking, “If I get robbed or my things like old truck gets stolen, I’ll deal with it at that time. I’d significantly spend money dealing with what I know will happen, rather than what could happen.”

The way of thinking like insurance is protection only against casualties like accidents or losses need to be changed. In fact, the most significant reason you may need insurance is for protection from legal hazards or risks. If you understand how insurance is essential to your business, you will be in a better position to select the types of insurance you need and to determine how much insurance you need.

If an uninsured loss hits a business like accidental destruction of the business’s computer system, or a lawsuit based on a “slip-and-fall” that occurred on the business premises, the business’s owner could be influenced in two ways. First is loss may reduce the profits, second is owner may have legal responsibility to others to pay for the business’s loss. So, in order to lessen the burden of owner at the time of accidents, business need to be essentially insured.

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