What is asset protection? Does insurance pay a role in asset protection?
In our opinion, insurance is the most important tool in protection of assets because it provides a safety net against potential financial losses resulting from unexpected events. Without insurance, individuals and businesses could be left to bear the full cost of any damages or losses, which could be significant and even devastating.
For example, if a homeowner’s house is destroyed in a fire, the cost of rebuilding or repairing the house could be prohibitively expensive. However, the homeowner with proper and adequate home insurance will be able to file a claim with the insurance company and receive financial compensation to help cover the cost of repairs or rebuilding, as well as the cost of replacement of any lost personal items. While homeowners insurance can’t replace family heirlooms, it can get you back on your feet again.
Similarly, businesses that rely on equipment, inventory or other property, as well as their principals and employees, to operate can be financially devastated if these assets are damaged or destroyed, or if the principals or employees are injured or killed. Insurance can help protect against such losses, ensuring that businesses can continue to operate and meet their financial obligations even after a catastrophic event.
Finally, liability insurance protects from claims of third parties for damages arising out of actual or alleged accidents, negligence or malpractice. In addition to coverage of actual damages, benefits of many insurance policies include legal defense, including attorneys’ fees, which in itself can be significant and even devastating. Insurance can also serve as a shield against fraudulent claims of unscrupulous criminals.
Insurance provides peace of mind and financial security, allowing individuals and businesses to focus on their daily activities without unduly worrying about the potential financial consequences of unexpected events.
To fully protect your assets, call Essex Insurance Brokers at (847) 954-2222 or email us at [email protected] for a consultation.
What should I consider when purchasing insurance?
Many important factors ought to be thoroughly to considered when purchasing insurance, including:
- Coverage: Make sure that the insurance policy you choose provides the coverage you need, including the covered risks and coverage limit. Consider the potential risks you face and the financial consequences of those risks, and make sure that the insurance policy you choose adequately covers these risks and gives you sufficient financial protection. Make sure to add necessary insurance by purchasing another policy (perhaps umbrella policy) or adding an endorsement to the basic policy to cover all potential risks that need to be covered.
- Exclusions and Limitations: This is closely related to the first point. Carefully read the policy to understand what risks are excluded from coverage, what conditions are required by the insurer to be met and what other limitations may apply.
- Cost: Price is always a consideration when purchasing insurance. Compare the premiums and deductibles of different policies to find one that best fits your budget or is most cost-effective.
- Reputation: Choose an insurance company with excellent or, at the minimum, good reputation for customer service and claims handling.
- Financial Stability: Consider whether the insurance company you choose has the financial stability to pay claims in the event of a disaster. You can check ratings of insurance companies through independent rating agencies like A.M. Best or Moody’s.
But most importantly, obtain your insurance through the source you Trust.