Liability insurance is not something that is needed by everyone, so how does one know if it is a policy that you should have? Anyone offering a service to a third party should consider having liability insurance as protection if something should go wrong. This can be any size of business or a self-employed individual. A liability insurance policy will give peace of mind to both the policyholder and any potential customers. If something unforeseen happens, that causes damage to property or persons, then a claim can be made to cover the cost of repairs or medical treatment.
There are some trades and professions more likely to need liability cover more than others; builders, plumbers and electricians should all have a valid liability policy held with a reputable company. If it were believed they did not hold a policy then it would be wise to consider using another company to undertake the works required. No one would be covered for any mistakes or damage caused, and the client could potentially be thousands of pounds out of pocket if an incident occurred and there was no insurance cover.
Liability insurance often only costs a small amount, particularly when compared with other policies one might need for businesses, such as vehicle insurance or buildings and contents insurance. Many people may consider that it is not worth having, but ensuring a business is covered by liability insurance could also make the difference between it staying afloat if something untoward were to happen or having to close down. A business closing down could mean a complete loss of livelihood, for what potentially could have been just a few pounds cost each month.
Home insurance is one of those things that come around year after year, seemingly without need. Sometimes it can seem like an unnecessary expense, but the constant risk of damage to the home from fire, burglary, floods or other disasters makes it one expense that most people make sure they pay.
Home insurance combines different personal protections, including the likes of protection against building damage, contents damage and the loss of use of your home. So if you must live elsewhere for a period of time, the insurance will cover the costs.
With global warming, the worsening weather conditions can lead to damage to buildings from flooding and cold weather. Harsh winters can result in burst pipes, broken heating or a whole host of other disasters that are not particularly nice to experience during bitterly cold weather. Home insurance can smooth over some of these painful blips, covering the cost and ensuring faster fixes. It is important to notice that some policies do not cover flood damage or other natural disasters, but special insurance can be bought to cover these.
Cheap home insurance can be found through insurance brokers or comparison websites on the internet.
Life insurance is really essential if you have children or other dependents that would have to manage without your income if you were to die suddenly. It is not compulsory of course, and single people or those without families or children may well not need life insurance cover, preferring to invest their money in other ways.
Although one might assume that life insurance means simply that, there are actually several different kinds of life insurance that you might wish to consider that would secure your family’s financial future in the event of your death.
The two main types of life insurance are Term Insurance and Permanent Life Insurance. The main difference between these two common types of life insurance is that Term Insurance will pay out a lump sum (the sum assured) if you die within a set period of time, and Whole-of-life or Permanent Insurance will provide a payment whenever your death takes place. If you live beyond the agreed termination time of a simple Term Insurance, then your dependents will receive nothing on the event of your death.
There are other types of life insurance that are linked to savings plans that pay a lump sum upon maturity. Many individuals use these as a form of investment that includes valuable life insurance cover.
Always make sure that insurers are regulated under the FSA before you take out any policies.
There are three types of cover for car insurance and the choice of which to take out will depend on various factors. For the majority of young drivers, the cost of their insurance cover will be a major consideration. Motorists looking for all round protection will probably choose comprehensive insurance, but third party and third part fire and theft are available.
Third Party
Third party insurance is the minimum legal requirement for a motorist to have. It provides a driver with a level of insurance that covers anyone who is injured in an accident caused by the driver, whether they are the driver or the passengers of another car, individuals not in a vehicle who may be hurt, or passengers in the driver’s vehicle. The insurance will provide compensation to all these individuals but it will not cover the costs that a driver will incur due to the accident. When considering taking out this level of insurance, a motorist must weigh up the pros and cons before deciding if it is the right form of protection for their needs.
Third Party Fire and Theft
This insurance provides the same coverage as third party cover but offers the additional benefit of cover in the event that a vehicle is stolen, damaged or destroyed by fire. The technological developments in car security over the years has made it more difficult for newer cars to be stolen, although it is advisable for all motorists to ensure that their vehicle is locked when unattended and the steering lock engaged. Older cars are easier to break into and steal and so this cover is useful for owners of older vehicles. Insurers may also ask about the location in which a car is to be kept as this can influence the cost of insurance premiums.
Comprehensive
A comprehensive policy covers for any eventuality, even if an accident or incident is the fault of the vehicle driver. As well as the benefits of third party and third party fire and theft cover, the policy covers the costs incurred through accident damage.
The UK is renowned for being a nation of pet lovers. In 2009, it had the second highest statistic for pet insurance across the globe. The first pet insurance policy sold in the country was in 1945.
With more sophisticated, advanced, and therefore expensive medical care available for animals, the cost of veterinary care has increased substantially in recent years. Added to the fact that today’s Western societies expect people to take good care of their pets, pet owners are spending more than ever on veterinary treatment. Consequently, a growing number of pet owners are taking out pet insurance to guard against such costs.
Most pet insurance policies cover only cats and dogs, but an increasing number are covering smaller domestic pets such as rabbits, hamsters and guinea pigs, plus exotic pets, like lizards and snakes. Some of those pets might need very specialised and therefore much more pricey care. Horses can also be insured as pets, but other large animals, such as cows and sheep, tend to be insured under a livestock or agricultural insurance policy.
Although the main reason that pet insurance is taken out is to cover any costs related to a pet’s health, pet insurance does not work like human health insurance – in fact, it is more comparable to property insurance.
The age, weight and general health of an animal is taken into consideration when a premium is calculated. The premium is also affected by the excess payable and by whatever else is covered by the policy, from third party liability to a lump sum payment on the death, loss or theft of the animal.
As a first port of call in the case of medical emergencies, residents of the UK always have access to the NHS. However, when travelling, many find to their detriment that no such provisions are available in other countries. It is not uncommon for travellers to fall victim to disease, and they may find themselves saddled with debilitating medical bills after receiving care at foreign hospitals. Therefore, medical insurance is an essential consideration for travellers.
It is a mistake to think that disregarding health insurance for holidays will save money. The risk of paying large amounts of money for unexpected illness treatment is too great, and could ruin an otherwise great holiday. The cost of holiday health insurance is generally quite small, since most people only travel for a week or two. Consider that in the US, if a traveller has to be repatriated to the UK, they may have to pay a huge £45,000 for travel by air ambulance. Compared to this, a few extra pounds for travel health insurance seems insignificant.
Insurance is especially important on holidays involving sports. Skiing, mountain climbing and biking, as well as any driving, carry a certain amount of risk, and will merit taking out insurance.
If you are a landlord or are thinking of becoming one, it is crucial to know all the facts about landlord insurance before renting a property out to tenants. Different types of landlord insurance are available, but generally a policy should cover buildings and contents insurance, which includes damage from storms, fire, burst pipes, fuel oil leaks, theft, smoke and lightning. It may also include cover for events such as the property being damaged by falling trees or vehicles involved in a road accident. Always thoroughly check your individual policy to see what is and is not covered. Fitted furniture such as kitchen units or built in wardrobes will also fall under buildings and contents insurance, but it is important to note that all possessions belonging to tenants should be covered in their own contents policy.
Depending on the nature of your landlord insurance policy, you may find yourself not covered in certain situations. It may be worth upping the premiums so that your property is covered for periods of vacancy between tenants; although it is worth noting that this would not extend to long unoccupied periods or holiday lets, for example. Similarly, it might be worth checking your policy to see that the cost of re-housing tenants is covered, in the event of serous damage or major repairs.
How do you know whether you will need a life insurance policy, and if so which life insurance policy should you choose? Not a decision to be taken lightly, it is a very important one and therefore should be made with the help of a trained professional. He or she will discuss with you the financial aspects of your life and will recommend the correct policy for you, your family, and your particular circumstances.
If choosing a policy without first taking professional advice you will have to decide on whether you wish to choose either a Term life insurance policy, Permanent life insurance or some kind of savings linked cover. You will need to weigh up the pros and cons of each. Assess the cost of the premiums and see if you can first of all afford to meet them, and then calculate if they will provide a satisfactory return on your money. Remember that this is money that you might not directly benefit from, but if you die prematurely your family will. It is that peace of mind that makes the premium payments less onerous to pay each month. At the bare minimum of cover you can relax, knowing that your funeral expenses will be covered, thus saving your family from a financial crisis at an emotional and upsetting time.
You may wish to consider taking out a life insurance policy on behalf of somebody else; typically this is done by parents for their children. Children’s life insurance is also a form of investment, as the premiums can be paid when the child is at a young age and the policy generally matures when they reach the age of 18 years. The policy can then be redeemed for a lump sum that the child will benefit from. If invested well, this money could become a valuable starting point for your child when they are beginning a university career, or perhaps as a down payment on a first flat or car. A wise decision would be to reinvest some of the money in a new investment policy for your child, while also taking out a renewed life insurance policy, so that all bases are covered and they have hopefully been given a great financial start to life.
For any 21st century company, having a range of insurance policies in place is very important. Whether firms are handing out advice to customers in private offices, or are a public outlet where hundreds, or possibly thousands of consumers visit, financial protection products have been created so that if a negligence claim of some sort is filed, firms have the means in place to pay compensation and legal fees. Whilst some forms of insurance such as professional indemnity insurance are mandatory for certain sectors, public liability insurance is optional. However, businesses should think of the insurance as a vital part of their company setup, and it is advisable not to operate without an effective policy in place.
Whilst insurance premiums for public liability can be high and some business owners will want to avoid excess costs, the ramifications of not having sufficient cover could be significant. In the case that a file is claimed due to the injury of a member of the public, thousands of pounds can often be paid out in compensation and legal costs. Such finances are rarely held in reserve by businesses and thus, in instances where the company has no insurance, can easily send business owners into bankruptcy.
Having public liability insurance should be a number one priority for any business owner wanting to protect their firm. Whilst customer risk can be kept minimal, there is no way to remove risk entirely. For those who don’t want to see their business fail due to an accident, taking out insurance will offer both peace of mind and financial protection.
Health insurance is often thought of as an American way of looking after your health. After all, in the UK we have the NHS, an extremely large healthcare organisation that is free at point of entry and available for everyone to use. However, increasingly, people are making the choice to take out health insurance and have greater control over their, and their family’s health.
The NHS does an excellent job of providing free care for everyone that needs it, but there are certain limitations that make private healthcare desirable. Speed of treatment is a very important factor to consider – with an ageing population, increasing demands are placed on the NHS and waiting lists are inevitable. Health insurance helps to cut down on this, while at the same time placing the very best quality care at a patient’s disposal.
In the US, there is no choice but to have health insurance – in the case of not having insurance, medical bills can be huge and unmanageable. In the UK, there is a choice to be made. Most choose to rely on the NHS, but for those who require increased service and shorter waiting times, private healthcare is the way to go. Increasing numbers of people are now going down that route. Just as in the US, private healthcare becomes much more accessible with insurance.
In exchange for a long term, relatively modest investment, the worst medical emergencies can be covered without the fear of being given an unexpectedly large bill at the end. This helps to take the worry out of healthcare. Peace of mind and lowered stress levels are key benefits of health insurance.
January 20th, 2012 by brignallarcher in