Different types of insurance policies are simply, the different contracts which issued between the insurance company and the insured. The contracts contain the relation between two parties. The first party, which is the insurer and the second party, which is the insured person or company.
The contract provides that the first party will reimburse in case of loss or peril the second party; As in return, the second party will pay premiums steadily monthly or yearly as agreed to the first party.
The type of insurance must be listed in the insurance policy. The insurance policy only covers the damages or loses which are over the amount of the deductible or excess amount. This contract also has to include the value of the insured issue and the insurance premiums.
There are different types of insurances for individuals. The most common insurance policies are car insurance, life insurance, home insurance and health insurance. There is also less common insurance policies, like insurances against sickness, accidents, unemployment and third party insurance.
While the legal persons use different types of insurance, they mostly use business owners insurance, vehicles insurance, small business insurance, property insurance, medical insurance and dental insurance.
There are certain corporations who are interested in certain types of insurance, like airports and the airway companies whom are the only interested parties of the aviation insurance. Marine companies are the beneficiaries of marine insurance, the farmers benefit from the crop insurance and the industries facilities interested in machinery or boiler insurance ….etc.
There are some other different types of insurance, which are not as common as the above insurances like the earthquake insurance, the flood insurance, landlord insurance, terrorism insurance and many other insurance types.
Also there are different types of insurance, which are least common such that bloodstock insurance, kidnap and ransom insurance, travel insurance, media liability insurance, nuclear incident insurance, pollution insurance, pet insurance, and some other insurances which are rarely used.
The premium of the different types of insurance vary by the type of the insurance, the premium of an insurance policy over a house valued with 200,000 must be larger than the premium on a house with the value 20,000. The premium also differ according to the magnitude of risk as the premium rise when the magnitude of risk rises. The premium of the same car will differ according to the driver; As the premium will be higher if the driver was a young man in the early 20th and than a man in the 50th.
If you were the owner of a small or a big business, there are some questions you need to ask yourself before getting insurance.
First, which type of insurance do I need? which percent shall I cover, the whole amount or just a percentage? Where shall I get the insurance policy?
Maybe some people would consider the premiums as a waste of money, but surely they wouldn’t think the same when their car gets wrecked in an accident, or their house gets destroyed for any reason.
If you are hesitating and can’t make up your mind about whether, to apply for insurance or not; Get in contact with the closest insurance agent.
Ask the agent about the benefits of applying for insurance; the risks and losses, you are going to take if you don’t apply for one. When you get the whole picture, you can then decide which type of insurance suits you and your budget based on the premiums you are going to pay for the different types of insurance.
