Introduction
Greetings everyone and today I would be discussing a very important topic with you all today.
Insurance like many of us are aware insurance is a very broad topic with so many concepts and terminologies involved.
He then handed over to me to discuss the terminologies as well as disadvantages and advantages of insurance in businesses.
The word insurance as seen above is gotten from two languages, English and french , bothlanguage have Thier origin in the word insurance.
The Old French word enseurance and english word ensure. Put together they form the word ensurance which means the act of ensuring the safety of a particular good or service.
Over time the term insurance has evolved to a branch of business which is necessary for the success of most businesses today.
Due to the fact that all form of business involves a degree of risk it becomes necessary that business look for a way to protect themselves from this risk, that's where insurance comes in.
This is the individual who is in charge assessing the risk involved in business situations and then calculating how much businesses would pay as premium in order for the insurance company to cover this risk.
This is the amount paid by business to insurance companies in order for the companies to cover a certain risk, premium is being calculated by the actuary who asses the risk and the eventuality and possible loss which may occur if such a risk is to occur.
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Assured
After paying of the premium the businesses then get the status of assured meaning that if the risk were to occur they are assured the insurance company would compensate them for any lose incurred
Claim this refers to the situation whereby the Business file to the insurance company claiming for compensation after the event they insured over has occurred.
When one does insurance he or she is protecting him self from a specific risk, hence coverage is that risk in which you are protecting your business from, they are various risk involved in business and often times it is impossible to get coverage for all this risk, hence you only go for those which are most likely to occur such as fire, accident, and the others.
In the event that a business covered by an insurance gets damaged and the business calls in its claims the business then send an estimate of the amount of goods and services that were destroyed, this estimate comes in form or money which the insurance company is required to pay to the business
This is the individual who have undertaken to insure his business with an insurance company, after the risk is assessed and the premium bisbbeing paid they become a policy holder in the insurance company.
Since risk as so much and unavoidable this is a form of insurance protection in a business which seeks to protect the business against any possible loss which may occur during the process of the business, be it loss by fire or stealing or whatever.
The umbrella insurance is a comprehensive insurance policy.
Insurance is very important in any business we wish to undertake this is so because the mere process of doing business comes with Soo many risk which may occur at any given point, the only way to protect our selfs from the risk that may occur while doing business is to plan for this risk.
With insurance the process of insurance businesses are covered up of various fix which ordinarily would pick up a business with an individual goals for insurance premium and such a waste of course they're quickly reimbursed and business can continue like nothing happened
Getting an insurance premium is very easy as these days there are various insurance companies around with the presnces of many companies around insurance company in a bit of competition tend to reduce premium and make the process of applying for insurance very easy for all those who are interested
Like a common phrase all that glitters isn't gold it can be clearly related to the term insurance as insurance policies to be a safe Haven for business it is greatly flawed and have so many downside some are as follows.
It is not unheard of when we see on the news that various insurance companies are being sued by businesses for for failure to pay insurance claims, this is a common practice in the insurance industry whereby insurance companies claim to underwrite various risk for businesses and when. This businesses file Thier insurance claims they insurance companies tries to default on their agreement.
Most insurance companies often charge very high amount of premium in order to underwrite various risk of businesses ,this premium is inflated by insurance company claim to do protect the businesses are also profit oriented businesses they are more after making profit than covering losses so they will try as much as possible to underwrite any risk they can find for the highest possible premium in the hopes that such risk do not happen and they profit.
The process of insurance and obtaining premium involves a lot of legal work which if not carefully handled can lead to deceptive agreements.
The paperwork involved in insurance policies are often very bulky and difficult to comprehend hence it is imperative that all those who wish to take an insurance policy do so with the aid of a lawyer.