Can business liability insurance cover legal defense costs?

Yes, business liability insurance generally covers legal defense costs, including attorney fees, court expenses, and settlement costs, even if the claims are found to be false. This coverage can help businesses avoid financial strain during litigation.

How often are solvency ratios reviewed by regulators?

Regulators review solvency ratios annually or more frequently during financial audits, stress tests, or in response to economic downturns that may impact an insurer’s stability.

What is directors and officers (D&O) liability insurance?

D&O insurance protects company executives from lawsuits related to mismanagement, negligence, or regulatory violations while performing corporate duties.

Can I get insurance with low premiums and high coverage?

It’s possible to get insurance with lower premiums and higher coverage, but it often involves trade-offs. For instance, you might need to increase your deductible, limit certain types of coverage, or opt for a policy with exclusions that reduce your overall risk. It’s important to balance affordability with adequate coverage for your needs.

What is a return of premium rider?

A return of premium rider refunds all or part of the premiums paid if the policyholder survives the policy term, making it a beneficial but expensive add-on.

What happens if I don’t have professional liability insurance?

Without PLI, professionals risk paying for legal fees, settlements, and damages out of pocket. A single lawsuit could financially devastate an individual or business. Many clients require proof of insurance before hiring, making it essential for credibility and financial security.

What is a participating whole life insurance policy?

A participating policy allows policyholders to earn dividends if the insurer performs well financially. These dividends can be used to reduce premiums, buy additional coverage, or receive as cash payouts.

Is the grace period the same for all insurance types?

No, grace periods differ by insurance type. Life, health, auto, and home insurance may each have different grace period durations and rules.