Friday, February 18, 2011

The Circumstances When We Are In Need Of Insurance

How Much Does Life Insurance Cost

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The Circumstances When We Are In Need Of Insurance


by Jack Wogan


Assaulted from all parts by insecurity and conflicts, there are numerous cases in which insurances are a requirement, if we mean to defend ourselves against hurtful events provoked by nature or other people. Such a case is when we own a firm and we employed some staff. Employer's liability insurance is an absolute requirement, given that according to any employment contract the employer is the one responsible for the health and safety of their employees in the workplace.

Another circumstance that makes the acquisition of insurance a must is when we run a business that deals with customers. If cooking and selling meals and drinks is what you do - whether at a restaurant, fast food or bar - you are responsible for your customers' health and safety while they are on your premises or consume what you served them. If they get hurt in any way for whatever reasons, the only way to protect yourself is by purchasing public liability insurance beforehand, covering compensations for what they suffered and legal costs if they sue you in addition.

Of course, you should be always protected against what your staff may do to your customers, out of inattention, omission, misjudgment or error. In some businesses such probabilities are quite high, such as beauty salons, practices, surgeries or restaurants. Here it would be a definite requirement to have professional indemnity insurance covering compensations and legal expenses, if your employees harm a third party in any way.

If you are a Wall Street broker, for instance, and you sold a substantial number of your clients' stocks when the prices were low, although you should have known that they were going to rise, then the said clients may sue you for their financial losses. But with professional indemnity insurance, although you were at fault by misjudging the situation, the relevant losses will be covered by the insurer.

Other circumstances when we need insurances are related to extreme natural phenomena likely to destroy what we possess or human interventions that may have the same result, such as theft, burglary or robbery. In such likelihoods, we should cover everything we own, whether it is a building, its contents or stock. In conclusion, we need insurances whenever we possess something that is vital for our living or carrying our activity.





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