Life doesn't always go according to script. Without warning, anyone can become a victim of an accident, natural disaster, or injury. Insurance is meant to give us some measure of protection, at least financially, in the event of a disaster.
There are so many different types of insurance it can be difficult to know which are truly necessary. Factors such as children, age, lifestyle, and employment benefits all come into play when determining which types of insurance are appropriate for you.
Common Types of Insurance
Although it is important to protect yourself in the event of a disaster or injury, insurance can be expensive. That's why it is important to properly assess your risks in order to avoid financial ruin. Some of the most common types of insurance and what they cover are listed below.
Protects against damage to the home and items inside the home. This type of insurance may protect you from accidents that happen at your home (such as slip and falls) or that may have occurred as a result of your actions. Separate policies may cover liability or certain high-risk natural disasters. See What Does a Home Insurance Policy Cover? for more details.
This is a sub-set of homeowner's insurance that is used by renters. This type of coverage protects against damage to the physical property, the contents of the property, and may also cover personal injuries within the home. See Renter's Insurance for more information.
Another very important (and legally-mandated) type of insurance, auto insurance covers all road vehicles (trucks, cars, motorcycles, etc.). Car insurance can protect against both physical damage and bodily injury resulting from a crash, and typically also covers liability arising from a collision. See Automobile Insurance Policy Coverage for details.
Life insurance protects an insured against the financial losses associated with death. You pay a monthly premium in exchange for the payment of benefits to a designated beneficiary upon your death. This type of insurance allows for peace of mind, allowing you to know that your loved ones will not be burdened financially upon your death. See Life Insurance Options for additional details.
If a business owner owns a building, office equipment, computers, or inventory, property insurance is an option. These policies protect in the event of a fire, vandalism, theft, smoke damage, etc. Small business owners may also want to consider business interruption/loss of earning insurance as part of the policy to protect earnings if the business is unable to operate. See Different Types of Commercial Insurance to read more.
Business Owner Policy (BOP)
A business owner policy packages all required coverage a business owner would need. Often, BOPs will include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance. Based on your company's specific needs, you can alter what is included in a BOP. Typically, a business owner will save money by choosing a BOP because the bundle of services often costs less than purchasing all of the individual coverages separately. See Small Business Insurance Plans to learn more.
Get a Free Evaluation of Your Legal Claim
Understanding who is liable for what in a personal injury case can be a complex issue, especially for the layman. Failing to obtain such an understanding, however, could prove costly for an injured party. Hiring an attorney who knows the relevant laws in your state will help protect you from unintended outcomes. Fortunately, you can have a qualified personal injury attorney do a free evaluation of your case here.