Why does insurance exist?

Insurance has been around for a long time. It’s been an important thing for a long time, too, but why? Well, we won’t go into a boring history lesson on the evolution of insurance over the years (snore), but we can talk a little about why it’s a thing.

Okay. So, insurance is to help people out if there’s a loss that’s covered by the policy. Imagine there’s a homeowner who has a really pretty house…but then there’s a house fire. The homeowner can’t afford to shell out the hundreds of thousands of dollars to rebuild the house on a whim, right? (Well, probably not, unless they’re a billionaire.) But the homeowner has been paying premium to their trusted insurance carrier. The homeowner can file a claim, and then home insurance can help cover the costs of rebuilding.

Or how about this – you’re at-fault in a bad car accident. You could be responsible for paying the medical bills of the other driver, the repairs of the other driver’s car…oh, and you get sued, so there are legal expenses you have to consider. But your car insurance company can help you cover those costs so you don’t go bankrupt.

Or think about a business owner. They have a premises. But then someone trips or something and blames the business. They decide to sue. The business owner could be on the hook for the injured person’s medical expenses, and then there’s the legal expenses, too. Yikes. But that’s why general liability insurance is a thing.

Bottom line, insurance exists to protect people from financial catastrophe if a covered loss happens. Life is uncertain, and you never know when a split second could lead to a major financial blow. But if you have the right insurance coverages, you could be protected from what would otherwise be a devastating blow. The thing is that insurance can get complicated when it comes to the coverages because these coverages all do different things – and work together to protect you.

So, don’t get bamboozled by the coverages! We can help decode the insurance you need to protect yourself – whether it’s your home, business, or car. Get started with your quotes by filling out our online form, giving us a call, or messaging us on LiveChat.