What You Should Know About Insurance Co

Introduction

Broadly defined, insurance is a form of protection against possible risks and losses. It involves an insurance co and a person or an entity. These risks are assumed by the insurance co in the form of a policy taken out for protection against these perils in exchange for paying monthly dues. Insurance is taken by individuals with an insurance co that will act on their behalf and compensate them and third parties when things happen such as natural disasters, accidents, death, fire, sickness, and disability to name a few.

History

Insurance as a concept already existed since the olden times in the form of bartering non-monetary goods and helping out communally when a neighbor’s property is razed by fire. However, it was not till the 17th century that the first forms of insurance occurred. Perhaps, a major development in the industry came when Edward Lloyd started what would become one of the biggest insurance markets in the world, Lloyd’s of London. In the US, the first insurance co was opened in South Carolina in 1732 providing insurance against home fires.

Features

There are many forms of insurance sold by an insurance co. However, the coverage of each type of insurance differs according to the premiums paid by the policy holder and the risks or perils covered by the insurance.

• One of the most common type is a home insurance. It insures the current value of the home from fires, theft, and natural disasters. It may also include compensating visitors who are injured while on the premises.
• Another kind of insurance offered by an insurance co is an auto insurance. It protects both the driver/owner and the vehicle from accidents, damage to the car and property, and for treating those injured in a collision or road mishap.
• Life insurance offers protection in the event of untimely death making sure that those left behind will have some monetary compensation whether it’s to pay for funeral expenses or to serve as a bequest for families.
• Health insurance is probably the most important type of protection that a person should have. Usually, it is provided by the employer and is a package of health benefits. When a person is sick, the insurance co will pay or reimburse the full amount or a certain percentage of medical expenses, depending on the health coverage of an individual. It includes a dental insurance that is used to pay for dental works such as extraction, fillings, and cleaning.
• In fact, there are many types of insurance that are available for sale in an insurance co. You can buy a travel insurance to protect yourself from financial losses if you are unable to go on scheduled flights or fail to use a hotel accommodation. It can also include evacuation and repatriation costs if you fall ill while on holiday or just need to see a doctor. Protection against theft or loss of valuables can also be a part your coverage.

Other kinds of insurance are those for disability, casualty, marine, terrorism, credit, livestock, and pet insurance. These are very specific insurances that aim to protect targeted property, events, and situations. In all cases, a person or a company pays monthly or yearly amounts to the insurance co receiving a policy that includes stipulations on what is covered by the insurance, monetary ceilings on compensations, and the validity of the insurance.

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