s your business (or you personally) in the event that you make a major mistake on the job.
Carpenters take out liability insurance to protect against accidents or mishaps during the building process. Stock brokers take out errors and omission insurance, which covers any mistakes they make when entering orders or completing large transactions. Restaurants can take out insurance policies which cover undercooked food or sanitary mistakes which may result in lawsuits.
All of these situations can be costly to resolve and these costs can even send a small or medium-sized business into bankruptcy. If you are a business owner, carefully consider the risks associated with your business and see if an insurance solution exists.
When we said that almost anything can be insured, we meant it. Here other types of insurance that exist.
Celebrities which are known for a particular feature or talent have been insuring their body parts in recent years. The concept of insuring body parts remains the same: celebrities are looking to pay an insurance carrier to assume the risk of them losing the asset. According to Latina.com, America Ferrer’s smile is insured for $10 million, while Rihanna has a $1 million insurance policy on her legs.
If you’ve ever been to a charity golf tournament, you have probably seen a hole-in-one prize. This hole-in-one prize will award any player a car or large check for sinking the shot. For a charity golf tournament, making this payment could send the tournament into the red. Golf tournaments typically insure this risk by purchasing hole-in-one insurance. If someone sinks the shot, an insurance carrier foots the bill, rather than the event organizer.
Finally, crop insurance. This is one of the most common types of insurance used in the United States but still falls into the “other” category. If you are a farmer, you are very familiar with this type of insurance. For the rest of us, it may be a new concept. During the growing season, farmers carry a huge amount of weather related risk. A severe drought, massive rain or hail storm can wipe out a year’s crop. For this reason, the vast majority of farmers elect to ensure their crops on an annual basis.
What To Look Out For
A wise man once said, “Insurance is sold, not bought.”
While insurance can be a life-saver, it is important to understand that just like an auto dealership or a cable company – insurance is a for-profit business.
Insurance companies spend millions of dollars each year advertising their services and employ thousands of insurance salesmen across the United States in an effort to reach consumers. Many of these salesmen are paid on a commission basis, meaning the more insurance policies they sell, the more compensation they earn.
Keep this in mind when speaking with any financial advisor or insurance agent. Don’t hesitate to ask how they are paid on the policy they are recommending. If they won’t provide you a straight-forward answer, considering looking elsewhere. Any insurance agent who has your best interest in mind will not have a problem explaining to you how they are paid, and the benefits of the policy they are recommending.
Reading The Fine Print
At its core, an insurance policy is a contractual agreement. In exchange for your monthly premium, the company is agreeing to cover the event being insured. Any events which are not explicitly included in the insurance policy will not be covered.
There are horror stories of individuals thinking a specific event was covered within an insurance policy, only to learn later that the event is not. The best way to protect yourself from this is by reading the fine print and having a detailed conversation with your insurance provide. Ask them “what if” until you completely understand your coverage under the plan.
What if a pipe bursts, is this covered in flood insurance? What if my phone is damaged, but not lost, does the phone insurance cover this? If we leave our door unlocked, will renter’s insurance still cover stolen items? Ask these questions before you sign on the dotted line.
Insurance can be a fantasti