A Personal and Business Insurance Update

Almost all of us have some sort of insurance, like auto insurance, home insurance, health insurance, or business insurance to name just a few.  We all have paid considerable sums of money to an insurance company in exchange for the peace of mind that comes with knowing that should disaster strike, we are insured.  However, how many of us fully understand the details of the agreement into which we are entering?

Within all the documentation that comes with any new insurance contract, there are contained legal provisions and contractual terms.  Insurance companies spend millions on lawyer’s fees and have teams of professionals constantly updating and amending the terms of their contracts for every possible eventuality.  You on the other hand, probably have very little time to spend becoming familiar with the contents of your insurance contract, and will simply glance over the main points that are highlighted by the insurance company.  That is where we can help. We have experience in helping our clients understand the complexities of insurance agreements.

All insurance contracts essentially have the same purpose and methods.  That is, the insurer takes on the risk of an event, which may or may not occur, and pays the cost of it if the event happens.  This may be any disastrous event, but the most common are car accidents, house damage, medical treatment, and so forth.  Life insurance is slightly different in that it guarantees to pay out a sum to a survivor upon your death--which unfortunately is a certainty that will occur.  However, the timing of death is uncertain, and in this sense there is still a very real risk that you will die at a time when your children or spouse are completely dependent on you.

There must also be some financial cost to the occurrence. The insurer must be able to have a reasonable idea of the cost of the loss if they are to be able to calculate the price of the premium accurately.