Role of Insurance
The process of risk management where a person, organization or agency are protected from unexpected financial losses from a risk that may occur. Insurance company, insurer, as well as an insurance carrier, are the type of companies that deal with offering insurance covers to individuals, companies and organizations. The person or organization that requires insurance can be referred to as policyholder or the insured. The insurer promises the insured to compensate him/her in the event of a loss that has been covered. In return, the insured will pay the insurer monthly or annual payments in form of the premiums to cover for the expected loss. The insurance will, therefore, pool the funds from different individuals or organization which will be used to pay the one who may experience a loss that is covered. Benefit insurance, indemnity, utmost good faith, insurable interest, proximate cause, subrogation, contribution, and mitigation are the various guiding principles in insurance. A home, a boat or even an auto machine are some of the things one can insure against risks.
An auto insurance is an insurance that covers trucks, cars, motorcycles as well as other road vehicles. The auto insurance covers all risks that are likely to occur from traffic collision or any other incidence in a vehicle that causes physical damage or even bodily damage leading to financial losses. Other risks that can be covered by auto insurance include theft of the auto, natural disasters that may affect the vehicle, as well as collision of the vehicle with stationary object. Property damage, the party insured, the vehicle insured as well as other third parties such as other cars, property and people are some of the risks that auto insurance covers. The type of the vehicle, its value, the age of the vehicle among others are some of the factors that influence the value of premiums for the insurance cover.
The insurance cover that covers damages and losses to a home or assets that may be found in the home is known as home insurance. Other risks that can be covered by the home insurance includes all accidents likely to occur in the home. Getting a suitable home insurance provider will ensure that any possible risks can be covered reliably. Having a home insurance cover will ensure that financial lenders have faith in giving an individual a mortgage. Boat insurance is also important as it helps cover any financial losses that may occur from destruction and damage of cargo, ships, and terminals. The property covered by the boat insurance includes that property both offshore and onshore. Mitigation of future risks and having security against uncertainties is the major benefit of home, auto, and boat insurance cover.