Insurance Basics

Life is full of risks, and those risks require advance planning. Whether you’re an individual or a business owner, thinking about all of the ways that you can protect what is important to you is necessary. Some things can’t be replaced, but you can prevent many financial disasters from marring your future. Knowing what kind of policy and insurer you need assures that no matter what, you can rely on having as many bases covered as possible.


Of the many categories of insurers, some of the most common include standard lines, excess lines and group captives. Standard insurers are more recognized by the public since they are regulated by the states in which they operate. Excess companies cover corporations or individuals who would require much higher costs than normal due to having large risk factors. Captive insurers are specialized in the sense that they may have an extremely specific need (such as a trucking company), and they group together to basically insure themselves.


When choosing the value of your policy, it is important to consider how much you can afford to spend when purchasing, and what you plan to be able to afford if you should need to pay a deductible. Obtaining a high deductible plan may seem frugal in the moment, but when an event occurs and you find that you will be required to shell out thousands of dollars (or more) in order for the policy to kick in and contribute to recovery costs, you may regret not investing a bit more in the policy. Instead of taking care of the claim and moving on, you’ll most likely have to spend more time recouping the uncovered expenses, which could make or break your financial well-being. It is said that an ounce of prevention is worth a pound of cure. When it comes to covering your risks and protecting what is yours, that saying most definitely rings true.

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