Top Reasons Why Group Insurance Is Great For You
More people are opening up to the concept of group insurance in many parts of the world, since they have discovered the rewards that it comes with. Most people have been hit by the harsh conditions of the deteriorating economies in most parts of the world, and more people accept any concept that offers support like group insurance, every day.
This is because with group insurance, individual members have a chance to be included in one master cover. They share the responsibility of cost-sharing the payments so the burden is lighter on each member, but the benefits are the same. This means that you get cover and more services for a lower price. You can find group insurance via labor unions, churches, organizations, friends and other service groups.
Group insurance has many benefits, which are important. It creates a chance for people who do not meet the standards of benefiting from certain insurance policies. The rules and regulations of a group do not bar anybody from enjoying coverage. Therefore, it is important for someone to keep up with the laws of the group since coverage is by merit from the group. Pooling funds makes it easy for people to afford policies that they cannot afford on their own. You are not limited to any number of groups so you can have different groups taking care of different policies for your insurance needs.
Another importance of group insurance is to increase group cohesion. Once the cover is in place, the members are hence tied to each other and they are usually prompted to care for each other. This motivates the ones who are not very strong in the group hence improving their condition. The fact that the group policies do not discriminate gender, age, race, or occupation is a good way of bringing people together for teamwork, especially in organizations.
Group insurance policies are good for you since they give you multiple options to choose from while making the payments. Either you can choose to be partial contributor, full contributor or non- contributor according to what the group rules stipulate. The options of non-contributory or partial contributory mostly apply to employee groups, because the employer foots the bill. Others may be for cases of minors or financially incapacitated senior citizens. This assures you of cover at all times regardless of what you can afford. For the cases of employers, they are able to reach out to their employees and create cohesion, which is good for teamwork.
Most group policies are not limited such that you are able to widen your scope. You can get group insurance policies for life insurance, health cover, property cover, automobile cover and many others. It is an important move for an employer because it attracts quality employees who will be motivated to work better. The ones that cover health and school funding are the most common. It is important to be in a group insurance arrangement if you are looking to get quality cover for a significantly small fee.
Liability Insurance: Definitions and Terms
Definition of Liability Insurance: The simplest definition of ‘ liability insurance ‘ is the Insurance coverage to protect against claims alleging that one’s negligence or inappropriate action resulted in bodily injury or property damage.
People & organizations can and do mistakes for which they become liable if and when these acts ruled to be the cause for damaging the bodies or the properties of others. This is when insurance policies come to provide the protection. Liability coverage pays when the insured is legally liable for the negligent act. In some situations, the coverage provides protection if the insured becomes ‘morally obligated’ to a party that is damaged by the non-negligent acts of the insured.
People/ organizations vary widely in their social and business conduct and so does the coverage that is needed to protect them. For each category of people/ organizations there are different coverage’s that provide the protections. Different people/ organizations need different types/ amounts of liability coverage.
Classification of Liability
Personal vs Commercial Liability: Personal liability insurance provides coverage for individuals while commercial liability provides coverage for a business entity. A 4-door sedan car needs personal auto liability policy. If the same vehicle is used for delivery, then it may require a commercial auto policy.
Personal Liability Protection normally comes in personal policies such as Personal Auto Policies (PAPs), Homeowners Insurance Policies, boat policies, and Personal Umbrellas. These coverage’s pay for damages that the Insured causes to the bodily injuries, personal injuries, property damages, legal defense in connection with claims brought against the Insured.
Business/ Commercial Liability Protection: Comes to cover businesses and/or individuals in connection with their business conducts.
Premises Liability applies when someone other than the insured or insured’s employees sues the business for damages due to an injury sustained in business premises. This means that the injured party must first suffer an injury on your premises, and then must make a claim for the damages they suffered.
Product Liability includes liability protection for business completed products or services. Similar coverage is provided under the term ‘completed operations’ such as operations of many contractors in the event that they cause damages to others in the course of their service rendering. Professional service businesses such as physicians, lawyers, real estate brokers, and insurance agents have special professional liability coverage’s.
Professional Liability- Provides protection for many classes of individuals and businesses for any bodily injury damages their service/ advice may cause to others. Examples include malpractice insurance for doctors and medical staff, errors & omissions for insurance & real estate agents, etc.
Employer’s Liability provides coverage for employees during their employment. The employer must be liable or negligent for the coverage to kick in. In the case of Worker’s Compensation, fault and negligence do not have to be proved for an employee to collect for any work related injury.