What does business interruption insurance typically cover?

It covers lost revenue, rent or lease payments, loan payments, employee wages, taxes, and relocation costs if a business has to temporarily move. Some policies also cover additional expenses incurred to continue operations during the disruption.

Can policyholders check an insurer’s solvency ratio before purchasing insurance?

Yes, policyholders can review an insurer’s solvency ratio through financial reports, regulatory filings, or independent rating agencies like A.M. Best. Checking an insurer’s financial strength before purchasing a policy ensures they can fulfill claims obligations.

What is the difference between a fixed and a percentage-based deductible?

A fixed deductible is a specific dollar amount that you must pay before coverage begins. A percentage-based deductible is calculated as a percentage of the total insured value or claim.

Why is claims management important?

Claims management ensures timely and accurate processing of claims to avoid unnecessary financial losses. It helps businesses and insurers control claim costs, prevent fraudulent activities, maintain compliance with legal requirements, and improve customer satisfaction by handling claims efficiently.

How can I avoid my policy from lapsing?

Setting up automatic payments, using premium reminders, and maintaining a financial buffer for payments can help prevent lapses. Some insurers offer flexible payment plans as well.

How much of my trip expenses does trip cancellation insurance cover?

Trip cancellation insurance typically covers 100% of your non-refundable expenses, such as flights, hotels, and tours, up to the policy’s coverage limit.

How does Whole Life Insurance differ from Term Life Insurance?

Whole Life Insurance provides lifelong coverage with a cash value component, while Term Life Insurance offers coverage for a set period (e.g., 10, 20, or 30 years) without accumulating cash value. Whole Life is more expensive but includes investment benefits.

Can an insured contest a claim denial?

Yes, the insured can appeal a claim denial by providing additional documentation, requesting an internal review, or seeking legal or regulatory assistance for fair resolution.