Different Types of Insurance Carriers
Insurance is basically a way of protecting against the risk of financial loss in the event of an accident or other unexpected situation. It is essentially a form of insurance risk management, mainly used to mitigate the risk of an uncertain or contingent risk. A company or organization that does not have an insurance policy may be vulnerable to a sudden and unexpected loss in the event that the insured has to file for bankruptcy and has no other choice but to close down. It is therefore imperative that an organization or business has a complete insurance coverage so that if something were to happen, they can pay for it.
Insurance coverage can either be a structured insurance plan that is purchased by an organization or a more flexible liability insurance that covers the risk from any liability related accidents. Structure insurance usually covers the risks of fire, theft, flood, vandalism, or collision but is not comprehensive. As compared to a liability insurance, structured insurance coverage does not have any claim reimbursement benefits and thus is only used as a source of protection against unexpected losses. While, it covers the major risks in the event of an accident, it does not contain the risk involved in the policy holder's loss in case the insured loses a claim. In other words, while the policy covers the risk and provides a cover to the insured, it does not compensate for the loss in case of an accident.
To start with, you should always ask about the insurance carrier. In most cases, the insurance carrier have websites that can give you some information regarding the company's claims compensation policies. Also, ask whether they provide any special provisions that will help in protecting you from liabilities. For example, some companies provide protection from damages to your property when your car is stolen. While, others also provide protection for any third party that gets injured due to your car. If they do not offer such provision, it is advisable that you do not opt for such insurance plan.