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Types of Insurances, for Personal and for Business

Insurance can be described best by simply calling it a contract. This contract is made up by a policy in which an individual or entity gains some sort of financial protection or a reimbursement for any losses that they may have received, and these are paid out by an insurance company. In short, it’s a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Let’s dive a bit deeper into what types of insurances there are. The most common types of insurance policies are homeowner, auto, health, and life insurance. Pretty much everyone in the United States has at least 1 form of these insurances, or has had 1 at some point in their life.

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Businesses, for example, can offer different types of accident insurances. A good example of this would be a fast-food or restaurant worker. Given all the dangerous things in a kitchen, a restaurant owner might offer insurance that covers burns that could be sustained from a deep-fryer. When you think about it, this is not a policy that a mechanics garage would need to employ, maybe their policy is for damages that could be caused by a car falling off of its lift and hurting someone, or worse. Breaking it down even more, certain health insurance policies will cover a very wide range of things. These insurances are common for families, and would include things like broken bones, car accidents, slips and falls, and other things that could happen during everyday living. There is currently no federal penalty for someone who does not have health insurance in the United States as of 2019. Some states, however, have adopted their own health insurance measures and requirements. If you are unaware of yours, or thinking about movie, this is something that you should look into to avoid a chance of a possible hefty fine in the future. Auto insurance is required by almost every state in the US. What this does is protects you in the case of most auto accidents. Depending on the type of insurance that you have, numerous things may be covered under an auto policy. A small fender-bender, a large multi car accident, even things that can’t be controlled, like a tree falling on your vehicle, or flood and hail damage. With the right policy, your insurance will absorb the majority if not all of the cost to cover the repairs or replacement of your vehicle. It’s also worth noting that having a track record of accidents that are your fault, could and in most times will, result in higher monthly fees to carry insurance. Life insurance is typically depressing to think about, as it’s a policy that is on someone, in most cases a loved one, such as a spouse, and only cashes out when the policy holder dies. In exchange for premium payments, the insurance company provides a large payout, In the case of a policy holders passing, the benefactor will receive a sum of money, dependent on the policy in place, this is known as a death benefit. As a business owner, know that you should offer some forms of insurance to your staff depending on what kind of work is done. Not only does it help to raise morale by keeping worry down, it also provides an effective benefit to attract no hires, not to mention keep the current staff sustained. For example, if you are a delivery service that requires your staff to use their own cards, then offering them company auto insurance, and accidental insurance would really help you to attract a higher caliber of employee. Insurance is a great benefit to offer to your staff to let them know that you care about what happens to them and keep their wellbeing in your thoughts and concerns. Ultimately happier staff, make a better product, earning you more money, while bolstering your reputation. You should also check with your local laws and ordinances, in some places you may be required to offer these types of benefits.

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