Category: Insurance

How You Can Be Safe with Contractors Insurance

contractorsriskinsuranceThere is a reason why contractors should buy contractors insurance. For one thing, it provides the necessary protection to the contractor should anything go bad with the service or product they provide. Another of course is the liability involved while the work is being done. The truth is that contractors insurance should never be overlooked as this provides risk reduction from any eventualities that may occur during the project or even when the project has been finished. Basically, a contractor with contractors insurance is assured of peace of mind because the protection the insurance provides enables them to be at the safe side.

Here are some of the protections you can get with contractors insurance:

Contractor Protection – as the name suggests, contractors insurance is a protection for the contractor against liabilities and eventualities that may arise. Normally, such liabilities can be very costly and may in turn lead to the bankruptcy of the business. When you have contractors insurance, the contractor is protected from any risks. This is the very purpose of the contractors insurance as it lowers the risk that the contractor undertakes with risky jobs.

Worker Protection – if any worker gets injured or killed while on the job, the insurance protection will kick in. Basically, the insurance will help the injured or diseased with their finances. Of course, it is vital that the workers are properly insured and covered for the liability of the contractor to be at a minimum.

Property Protection – if an accident occurs and there is damage to property, especially of the clients or other works being done, the insurance will provide financial assistance and reimburse the money that has been wasted from the damage. Of course, the labor charges will not be covered here, but at least you will at least have some claims instead of not having any at all.

Disputes – there are cases when disputes arise between client and contractor. Should there be any disputes with regards to the final product, this will be covered by the insurer. Even if the contractor gets sued, the contractor will have the financial backing of the insurance company. This is one of the biggest protections an insurer can get with contractors insurance.

Contractors insurance provides contractors the contractors risk insurance they need against any unwanted costs from incidents and eventualities. Contractors insurance is not an unwanted or unnecessary cost but a necessity that can help protect contractors from bankruptcy and any ridiculous expenses brought about by liability and other damages from the work they do.

A Simple Overview On The Importance Of Insurance

Many of us are aware of insurance and that it is a means of being able to financially regain what you would have potentially lost, provided that what you lost is insured and is properly covered by the insurance policy.  Although insurance is a very complex form of risk management and assessment, it does actually serve its purpose well for those who are able to insure only what is necessary along with the appropriate amount of coverage needed for that adequate protection.

Business-Insurance-Thornton1-300x200Anything can be insured!  And by this we mean anything.  However, there are guidelines created by insurance companies as to what can be insured and what cannot.  First of all, if you do not find any real value to what you are insuring or that the matter or object being insured serves no relative importance to you, the insurer will therefore deem that that is not an insurable item because you clearly would not mind losing it.  Even so, under that basis of anything can be insured, it simply means that whether the thing you are insuring is a tangible object like a home or car, or simply an intangible object such as a profession or a concept or idea, all these can be insured provided that certain criterions by your insurer are met.

Dependence on insurance for protection and decreased risk of loss is something that many of us are dependent on.  The fact of losing something without any viable means of return is something many of us will not readily accept, thus the aspect of insurance importance becomes more real and relevant as this is by far the only means where you can reduce your risk of financial loss should an insured item that is important to you suddenly gets lost, broken, or damaged.  Having insurance allows you to safeguard the things that are important to you.

If you have anything important that you would not want to lose through unexpected or undesirable means, having it insured will not only give you peace of mind as that item is now under the protection of an insurance policy, but that you will also be free of worry as any inevitable loss arising from contingencies will no longer be a worryingly dreaded event as the financial responsibility of your insurer necessitates the compensation of claims, provided that the cause of the contingency is within the grounds and coverage of the insurance policy.

Getting To Know The Different Principles Of Insurance


Insurance is a very serious business as it involves a lot of risk for the insurer.  If the insurer makes a wrong judgment and provides an insurance policy to an individual or entity, that minor miscalculation in their risk assessment may end up costing them a lot in the end.  This is why it is forgivable to say that insurers can sometimes be very strict when it comes to providing and releasing claims made by their policyholders.  Even so, while a strict by-the-book act can be an acceptable demeanor, still it does not justify the fact that some insurers can be just downright shrewd and unapproachable, especially when it comes to concerns about filing and making claims.

Most of the time, insurers are in the blind in regards to the actual value of the items being insured to them.  This in turn leaves them vulnerable to fraudulent individuals who are trying to take advantage of the loophole in an attempt gain monetary or financial benefits from themselves.  As a means of protecting themselves (insurance companies) from any risk of fraud or anything that is to their disadvantage, insurance companies have built six Principles of Insurance which they strictly abide by to protect themselves from any unnecessary risks.

The Six Principles of Insurance are as follows:

  1. Principle of Utmost Good Faith
  2. Principle of Insurable Interest
  3. Principle of Indemnity
  4. Principle of Proximate Cause
  5. Principle of Subrogation
  6. Principle of Contribution

All these six principles provide certain codes or values that are indispensable in the protection of the best interest of the insurer from any fraud or scheme that tries to cheat their established system.  By strictly adhering to the philosophies involved within each principle of insurance, insurance companies are able to sustain, an almost, risk-free business fortitude.  Thanks to these principles, insurers are able to effectively assess insurance risks and simply deny any individual or entity of any insurance policy if the insurer is doubtful or deems that the clients who are getting insurance are in this to create fraud.

The first two principles are delved into the value that they imply.  However, both have the innate capacity of denying insurance to individuals that attempt to commit fraud.  The middle two also implies certain values and aspects for certain circumstances.  Nevertheless, both attempt to cover cost and compensation over loss, but with strict adherence to the amount of claim or type of coverage to get compensation for claim.  The last two principles basically has cover on the amount of claims, especially on dual insurance policies by the insured from two different insurers.  The latter and last principle emphasizes the sharing of claims, whereas the principle prior to the last one states the responsibility of the insurer and what likely action they will take as compensation for loss from damages caused by a third party.

Auto Insurance – Why Is This Important?

If you own a car, then you know that auto insurance is a requirement these days to be able to renew your yearly car registration with your country’s transportation department or ministry.  Without auto insurance, you will not be permitted to renew your car registration as the government clerks at your transport department or ministry will not complete your car registration renewal and file it as incomplete.  This is why it is very crucial that you have auto insurance by the time you renew your car registration for the year.

Auto insurance is a very important aspect of insurance protection.  Although a lot of people do not necessarily see auto insurance that way as they consider it as an unnecessary expenditure on their part.  Nevertheless, the thing is, should you get caught up in any form of road accident wherein the damages that were incurred by your automotive vehicle are actually part and within the coverage parameters of your auto insurance policy, then all the expenses necessary to cover the repair bills as to what has been damaged will be covered by your insurance through the provision of claims priced accordingly within estimates of the cost of repairs.

If you do not have auto insurance or have not yet renewed your auto insurance within that specific point in time, your insurance company will deny you of any claim which means you will have to shoulder all of the expenses on the damages that have been caused by your vehicle.  This is the very reason why it is always crucial to have your auto insurance policy renewed or updated and not leave any lapse wherein you do not have insurance for just a single day.

Depending on the severity of the accident and the property damages that have been made, the cost of repairs and reparation vary greatly and it may end up costing you significantly more than if you were to get the necessary auto insurance protection with more than adequate coverage for a span of ten years.  This is of course if the incident incurred only property damages.  However, if there are any physical or bodily injuries caused to pedestrians, the cost you will have to shoulder will spike up even higher as the cost of medical bills are not exactly what you can call as cheap and affordable.  To prevent this from happening and avoid getting into a situation of financial ruin, it is much wiser to simply lower your risk by getting auto insurance with adequate coverage protection.