An insurance policy is basically a legal contract between the policyholder and the insurance company, which legally determine the benefits that the insurance company is legally obligated to pay in case of losses caused to the insured. In return for an upfront fee, commonly known as the initial premium, the insurance company promises to settle for a certain amount of financial loss caused due to perils outlined in the insurance policy. It is necessary that you carefully to understand your insurance policy before you sign on the dotted line. Only after reading and understanding your policy will you be able to understand what benefits the company will be entitled to when they finally do pay out a claim against you.
Insurance policy definitions are dictated by the laws governing insurance, including any applicable statutory declarations page. The declarations page contains information such as whom is covered, how much protection each person is entitled to, and what is not covered in the policy. For example, a public holiday is one of the main features of most public policies. Therefore, if you are out of town on a public holiday then your coverage form will state that you are entitled to a certain level of compensation should you suffer injury or die as a result of this public holiday. If your insurance policy definition of “out of town on a public holiday” does not specifically state that it covers accidental deaths, then your insurer must provide you with the relevant wording to be altered to state that you are covered for accidental deaths.
Another feature of most insurance policies is the statement that states that the plan is intended to provide protection against certain events or circumstances. Some examples of these events or circumstances include, but are not limited to, damage caused as a result of war, earthquake, floods, hurricanes, lightning, vandalism, terrorism, explosions, riots, theft, and natural calamities such as drought, earthquake, tsunami, and fire. A natural calamity may be defined as an occurrence for which there is no protective weather measures being put into place. Therefore, damage due to a natural disaster is included in the scope of a natural calamity insurance plan. In addition, coverage is also provided for accidents that are caused deliberately or unintentionally.
Insurance policies also contain detailed information about the types of incidents that are considered “unusual”. As an example, if you are a business owner and you decide to install video surveillance cameras to monitor your warehouse facility, then the declarations page of your insurance policy will inform you of the types of incidents that are covered. Commonly, the coverage limits for this type of “unusual” incident are those that occur when violence strikes an establishment that includes a large amount of people. However, if you are unaware that there have been documented incidences of assault, homicide, sexual assault, kidnapping, burglary, terrorism, or even domestic abuse within your business facility, then you should inform your agent to make any changes to your policy to add such incidents into your insurance policy declaration page. Visit here for more information about Flooring Contractor Insurance
Deductibles are another facet of insurance policies that have a direct impact on the total cost of your policy. Your agent can assist you to determine which deductible level is the most appropriate for your needs. Typically, a higher deductible means a lower premium and vice versa. For example, if you anticipate that you will need to make large claims in the future, then you may want to opt for a higher deductible.
One final aspect of your insurance policy involves the terms of your insuring agreement and the type of loss that are covered by it. There are various types of losses that can be included in your insurance policy. Some examples include property damage, bodily injury, liability, and theft. Each type of loss must be comprehensively defined in your insurance policy declaration page. If your insurer does not specifically address the issue of a specific type of loss, then you should refer to your state statute to determine the exact scope of your liability insurance policy. The declarations page will also detail the types of losses that are not covered by your insurance policy, such as advertising loss and publicity loss.