Safety Assurance

Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. There many types of insurance policies. Life, health, homeowners, and auto are the most common forms of insurance. The core components that make up most insurance policies are the deductible, policy limit, and premium.

Objective

  • When you buy an insurance policy, you make monthly payments, called premiums, to purchase protection from monetary repercussions related to things like accidents, illness or even death.
  • Pays cash policy benefits to your survivors in the event of your death.
  • Pays off repair costs if you damage your own vehicle, or damage another driver's vehicle or cause bodily injury to another.
  • Covers damage to your home caused by events such as fire, flooding or severe weather.
  • Helps you pay your bills if you become disabled and are unable to work.
  • Typically coverage for businesses rather than individuals, in the event someone is injured while on company property.

Benefits To Customer

  • Insurance meets statutory and contractual requirements as well as provides evidence of financial resources.
  • Insurance policies provide incentives to implement a loss control program because of policy requirements and premium savings incentives.
  • Insurance makes it unnecessary to set aside a large amount of money to pay for the financial consequences of the risk exposures that can be insured.
  • Insurance facilitates loans to individuals and organizations by guaranteeing that the lender will be paid if the collateral for the loan is destroyed or damaged by an insured event.
  • Insurance companies collect premiums up front, invest those premiums in a variety of investment vehicles, and pay claims if they occur.
  • Insurance helps reduce the burden of uncompensated accident victims and the uncertainty of society.