Nonprofit organizations play an essential role in our society. Although both small and big businesses have provided us the comforts and productivity we enjoy in this country. America’s nonprofit organizations are in the forefront in battling society’s most urgent and pressing problems – drug addiction, homelessness, illiteracy, crime, and violence. Moreover, nonprofit organizations care for our most vulnerable citizens – the young, the sick, and the aged.
It is important, therefore, that nonprofit organizations have key insurance protection so that unforeseen circumstances cannot disrupt the delivery of their services. To this end, at least four types of insurance protection are essential:
Commercial General Liability
Commercial general liability protects the organization from a wide variety of exposures. This insurance will cover legal obligation arising out of injuries or damages suffered by members of the public, customers, tenants, and others.
Property insurance
Property insurance covers most types of property owned or used by the organization. This applies to furniture, machinery, equipment, merchandise held for sale, office supplies, and other such items. Leased property may also be covered under this section, but only if the organization has a contractual obligation to insure it and it is not otherwise insured under the coverage of others.
Workers Compensation
Under workers compensation, the organization is responsible for the costs of any employee injuries that arise out of any employment related injury regardless of fault. Workers compensation is intended to provide financial relief for injury, illness, and death that result from workers performing their jobs or being on the job. It is not a substitute for regular medical insurance, life insurance, or disability insurance.
Directors and Officers Liability
Directors and officers liability coverage protects the organization and board members from suits alleging financial loss from wrongful acts or bad decisions. This coverage, which includes the cost of defense, should be a part of your risk management for your organization and board.
It is important to be mindful of the exclusions in each of these policy forms.
Organizations with these types of insurance protection will have taken the necessary steps to maintain their critical work against unforeseen risks.
Posts Tagged ‘ Types Of Insurance ’
Nov
People who travel regularly are continuously exposed to the risks of traveling. If you are one of those frequent travelers then perhaps you should consider acquiring multi-trip travel insurance. There are many policies out there that go for fair prices, and you’d be shocked to know what the cost of medical treatment in other countries of the world might be if you’re not covered under a plan. As scary as it may sound, the truth of the matter is that some countries may even refuse to treat you if you’re without some kind of protection that you’ve paid for in advance. Surely you don’t want to suffer from such an ill fated situation, so it would really be in your best interest to find something that offers you protection for your travels.
Obtaining several-trip travel insurance is the most cost-efficient way of keeping yourself financially safe whenever you travel, no matter where you’re going in the world. You only have to purchase it once and that will keep you covered in whichever country you travel to.
Multiple-trip travel insurance is essentially a travel insurance policy that insures the traveler for several trips. If it is an annual plan, then it covers all trips that are made within a year with a length of 30-120 days for each trip.
The insurance policy covers things like medical emergencies, flight cancellations and delays, as well as damage or loss to personal property while you travel locally or abroad.
The benefits of obtaining this type of insurance policy are obvious. A businessman who is on a trip can rest assured that if anything unexpected happens while he is away, he or his loved ones will be compensated for their loss. The convenience of the one-time purchase and the peace of mind one has while traveling is incomparable to the other types of insurance policies.
It’s a good idea to assess your needs before purchasing a multi-travel insurance policy. There are a range of insurance plans available that offer full or partial insurance coverage.
If you surf the internet you’ll find a lot of information about these insurance policies. There are numerous sites that offer detailed information as well as price quotations on the varied travel insurance policies available.
Another way to learn about these insurance policies is through a preferred insurance company. Here you can obtain detailed information as well as ask questions one-on-one. Whichever way you decide to gather more data, take your time choosing the best multi-travel insurance policy for you.
Oct
Economically Feasible Cost
To be insurable, the chance of loss must be small. The cost of an insurance policy consists of the pure premium, or amount actually needed to make loss payments, and the expense portion. If the chance of loss approaches 100%, the cost of the policy will exceed the amount that the insurance company is obligated to pay under the contract.
For example, it would be possible for a life insurance company to issue a $1,000 policy on a man 99 years of age. The net premium alone, however, would be about $980, to which would have to be added an amount for expenses which would bring the premium total to more than the amount of insurance. To make life insurance rates attractive, the premium has to be far less than the face of the policy.
Chance of Loss Must Be Calculable
Some probabilities of loss can be determined by logic alone-for example, the probabilities involved in the flip of a coin. Others must be determined empirically, that is, by a tabulation of past experience with a projection of that experience into the future.
All types of insurance probabilities are determined on an empirical basis. There are some chances of loss, however, which cannot be determined either by logic or from past experience. Unemployment is an example. Unemployment occurs with such a degree of irregularity that, as yet, no one has succeeded in working out a method of determining its future incidence.
This is one reason why unemployment insurance is not sold by private insurance carriers. If there are no available statistics on chance of loss, it is impossible to predict losses, in spite of a large number of exposures.
Unlikely to Produce Loss to Majority Simultaneously
No insurance company can afford to insure a type of loss which is likely to happen to any great percentage of those exposed to it. True, life insurance companies insure their policyholders against death even though it is well established that every one of them will die eventually.
The life insurance company is really insuring its policyholders against premature death. Its rates and reserve accumulations are fixed in such a way that it can pay claims as the claims mature without causing financial hardship to the company.
If all the policyholders of a life insurance company should die prematurely, this company would be just as bankrupt as would a fire insurance company whose policyholders all lost their houses by fire.
Unemployment runs aground on this last barrier, too. Those individuals whose jobs were secure could never be sold unemployment insurance. Prospective customers would be drawn solely from those who felt their employment situations to be insecure.
When a business recession occurred, hosts of the insureds would lose their jobs at the same time. It would be equivalent to a life insurance company having a large percentage of its insureds die at the same time.
Insurance is an arrangement whereby the unfortunate few who lose are indemnified by the fortunate many who escape loss. Particularly those whose financial well being depends on it, which is often the case with the families of term life insurance policyholders. If the many, however, suffer the loss, then the few will prove inadequate to indemnify them properly, except at an uneconomic premium.
In order to guard against catastrophic losses, fire insurance companies, for example, seek a wide distribution of exposures and set up underwriting standards which prohibit the concentrations of business in small sections of a city. They also put a clause in their policies excluding losses due to wars, thus relieving them of the danger of catastrophic losses resulting from atomic warfare.
There are many pieces to a successful coverage policy. The most important piece might be insurance liability. There are many different kinds of agencies and brokerages however each of them puts an intense focus on this aspect of the coverage. Risk financing has become extremely important in these difficult times.
When deciding what is good for your business it is common to overlook the coverage that is already in place or even may not be in place. It seems that it has been there forever and no need to change or update it. But this might be a lapse in judgment as appropriate coverage or lack thereof can make or break a business.
Due to the negligence of companies and individuals alike being sued is at an all-time high. These numbers continue to soar and it is important that a business has insurance liability that will cover them when needed. This type of coverage is mandatory but the right amount with the right premiums is not.
By deciding what types of coverage your business needs you can also decide what types of premiums with maximums and limitations are right for your business. It can be hard to determine exactly what amounts are right but luckily each agency or brokerage has experts that can help. As a business it is vital that you ask questions and understand your policy thoroughly. Understanding your policy can allow your business to make sound decisions to help increase profits.
There are three main types of insurance liability coverage. They are:
Public
Product
Employers
Public is that type of coverage that covers any person or persons that may be present and injured or killed during your events. Basically it means anyone who may suffer from the negligence of your company that is not a part of your company. This covers visitors, trespassers, and sub-contractors. It is important to remember that this type of coverage also covers damage to personal property of anyone mentioned in this group.
Product insurance liability is required for those that are manufacturing or supplying goods. These goods cover all varieties and the possibility of being sued can range from the smallest to the largest of consumer goods. Employers’ coverage covers the employer in the case that an employee is injured during his tenure of employment with the company. The risks here seem that they may be covered or run together. Any risks here should include bodily injury or property damage which can be caused directly or indirectly by the business.
Deciding which coverage is best for your business can be a daunting task. But making sure that your company is insured is very important and any business savvy person can see what the difference could be. Incurring a loss through being sued can be a crippling experience even for larger businesses. Costs can be incurred for everything from paying out legal consultation to paying out the claim. Insurance liability can help offset these costs if the right policy is set in place.
Sep
Insurance is a defensive measure used against future conditional losses to hedge the possible risks of the future. It is a legal contract that protects a person from contingent risk of losses through financial means and provides a means for individuals and societies to handle some of the risks faced in daily life.
These contracts of insurance are called policies and are provided by insurance companies. The Insurance companies charge a regular amount from the customers, which is paid back, either in part, or entirety, to the customers in case of a definite loss. This regular amount charged from customers is called Insurance Premium.
REASONS OF INSURANCE:
Sometimes in life it is not possible to avoid the losses. For example People may become ill. They may die of illness or accidents or their homes or other property may undergo damage or theft. So in all these cases and they have to face the loss of income or savings. So insurance is a manner of financially insuring that if such an incident comes about then the loss does not affect the present well being of the person.
DOCTRINES OF INSURANCE:
1 There should be a certain definite loss taken place at a known time, in a known place and from a known cause. Therefore the time, place and the cause of loss should be clear enough.
2 The incident that represent the cause of the claim should be accidental or beyond the control of the beneficiary.
3 The size of the loss must be significant from the perspective of the insured. Insurance premiums should cover both the estimated cost of losses, plus the cost of policy, regulating the losses, and providing the principal required to logically assure that the insurer would be able to reimburse claims.
4 The amount of premium should be affordable.
5 The possibility of loss and the cost of compensation should be calculable or estimable
TYPES OF INSURANCE:
Below are some kinds of insurances.
LIFE INSURANCE:
Life insurance policy insures the life of the insured. The insurance company is legally bound to provide a monetary benefit to a decedent’s family or the beneficiary after the death of the policyholder. The proceeds are paid to the beneficiary either in a lump sum amount or an annuity
MEDICAL INSURANCE:
Medical insurance is also called medclaim. Under this policy the insurance policy pays the amount to the insured for his health purpose. This amount covers the cost of medical treatment.
DISABILITY INSURANCE:
There are two types of disability insurance.One is simple disability insurance and the other is total disability insurance. In case of simple disability insurance,a financial support on monthly basis is provided by the insurer to the policy holder if he is unable to work due to an injury or an illness. But permanent disability insurance provides the reimbursement if a person becomes permanently disabled.
GENERAL INSURANCE:
It includes automobiles insurance, business insurance, property insurance etc.
Automobile insurance:
In UK this insurance is called motor insurance. It compensates the loss or damage occurred to the vehicle. But in United States auto insurance policy is essential to legally operate a vehicle on public roads.
Business insurance:
Business insurance protects the businesses against risks of losses and damages and compensates in case of loss
Property insurance:
This type of insurance protects the property against the risks like fire, theft etc. This category also includes fire insurance, flood insurance, earthquake insurance etc
Fire Insurance:
It is an insurance covering the damage to the property caused by fire.
Flood Insurance:
This type of insurance pays the policy holder in case of any loss or damage to the property due to flood. It protects the property against the flooding.
Earthquake Insurance:
This insurance compensates any damage to the property caused by earthquake.
IMPORTANCE OF INSURANCE:
Insurance plays an important role in sharing the risks of people in an affordable form.It helps the people to quickly recover from damages and losses.