Understanding Insurance Basics

Insurance Basics

Almost all of us are covered by some type of insurance. It may be auto, health, liability, homeowners, business owners or umbrella insurance. But no matter what type we have, it is an excellent way to manage risk and help preserve our assets. Having insurance is important, but having the right insurance coverage is really important.

Insurance is simply a way to help manage risk for yourself or your business. There is always a chance that you will be in a car accident or that your business could be burglarized. A good policy can help protect you from life’s catastrophes.

Personal Insurance Coverage

Individuals usually purchase insurance to protect their home and auto. They also purchase health coverage to help cover the cost of medical expenses.

A home is usually an individual or family’s most valuable possession. Therefore, it’s very important to purchase adequate homeowner’s coverage. It’s important to buy full replacement coverage so that you will have adequate coverage to actually replace your home and possessions in the event of a loss. Flood insurance may also be necessary if the house is located in a flood plain. Additional coverage may be needed if you have valuable jewelry, artwork or anything else of high value.

Auto insurance is required in most states if the vehicle is operated on the roadways. State legislation mandates minimum coverage for certain types of auto policies, but this is often not enough coverage. Work with your agent or broker to ensure that you have adequate coverage.

Business Property and Liability Coverage

Property coverage can cover you against any unforeseen losses that your business may suffer. This policy can protect your business from lightning, fire, vandalism and other perils.

This insurance can be set up to cover many things including building, machinery, office equipment, inventory, supplies and vehicles. It is very important to purchase full replacement coverage so that you will receive the full value of any items that are lost.

A Business Liability Policy will cover your business if it is sued by someone. Your business can be sued for negligent acts including slip and fall cases. A Liability policy will cover your attorney fees as well as the amount of damages that are awarded to the injured person.

Many insurance companies offer business owner policies that cover both property and liability coverage. When choosing this type of coverage, it is important to make sure that there is adequate coverage for both liability and property.

Worker’s Compensation Coverage

Worker’s compensation coverage is state mandated and will cover your employees for any injuries or illnesses that are work related. This insurance will cover medical expenses, lost income, rehabilitation therapy and also would pay benefits in the event of an employee’s death.

The world of insurance can be very confusing. There are many, many different types of policies and many different levels of coverage.

We can help you protect your business and those who work for you, by finding the coverage that best fits your company.

Call now to speak with one of the friendly agents in our San Francisco office, at 415-242-8777.

We will review your current coverage free of charge, discuss your current risks and search for the best commercial crime coverage to fit your business.