What is the difference between primary and excess liability insurance?

Primary liability insurance is the first layer of coverage that pays for claims up to the policy limit. Excess liability insurance provides additional coverage beyond the primary policy's limits, acting as a backup when the primary policy is exhausted.

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What is usage-based insurance (UBI), and how does it work?

UBI adjusts premiums based on actual usage and behavior, such as driving habits in auto insurance or lifestyle choices in health insurance, rewarding lower-risk customers with lower premiums.

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What is the NAIC?

The National Association of Insurance Commissioners (NAIC) is a U.S. regulatory organization that sets standards and guidelines for the insurance industry.

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Are small businesses eligible for cyber insurance?

Yes, small businesses can obtain cyber insurance, and many insurers offer policies specifically designed for SMEs. Since small businesses are often targets of cyberattacks, having coverage is essential for financial protection.

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How does public health insurance help with preventive care?

Public health insurance often includes coverage for preventive care services like vaccinations, screenings, and wellness exams. This is designed to catch health issues early and reduce long-term healthcare costs.

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What is replacement cost in insurance?

Replacement cost is the amount required to replace damaged or lost property with a new equivalent without considering depreciation.

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How does an insurer investigate a claim?

Insurers conduct interviews, inspect damages, review documentation, consult experts (e.g., engineers or doctors), and analyze claim history to verify legitimacy and determine the appropriate settlement.

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Do insurance brokers charge fees for their services?

Some brokers charge a fee for their services, but most are compensated through commissions paid by insurers. It’s important to clarify how they are paid before working with them.

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