What should I consider before purchasing business interruption insurance?

Business owners should assess risks, understand policy exclusions, review restoration periods, calculate potential revenue losses, and ensure they have the right endorsements to cover indirect losses like supplier disruptions.

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Is term insurance renewable?

Many policies offer a renewable option, allowing policyholders to extend coverage without a medical exam, though premiums typically increase based on age at renewal.

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Are damages from war or terrorism covered by insurance?

Most insurance policies exclude damage caused by acts of war or terrorism, though some may offer optional coverage or endorsements.

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What is the difference between proportional and non-proportional reinsurance?

Proportional reinsurance involves sharing premiums and losses between the insurer and reinsurer in agreed proportions. Non-proportional reinsurance (e.g., excess-of-loss) activates only when claims exceed a specified threshold, protecting against severe losses.

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Can an insured party waive subrogation rights?

Yes, but only if the insurance policy allows it. A waiver of subrogation is commonly used in contracts to prevent disputes between business entities.

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What is the difference between cyber liability and data breach insurance?

Cyber liability insurance covers a broader range of risks, including cyber-attacks, system failures, and business interruption. Data breach insurance specifically focuses on covering the costs associated with a data breach, such as notification costs, legal fees, and recovery efforts.

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What is the difference between Whole Life and Variable Life Insurance?

Whole Life Insurance has fixed premiums and guaranteed cash value growth, while Variable Life Insurance has flexible premiums and cash value that depends on the performance of chosen investments.

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How can I lower my liability insurance costs?

Implement risk management strategies, maintain a clean claims history, choose appropriate coverage limits, and compare quotes from different insurers for the best rates.

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