How much does business interruption insurance cost?

The cost varies based on the business type, revenue, risk exposure, and coverage limits. Premiums typically range from $500 to $3,000 per year for small to mid-sized businesses, with larger businesses paying higher premiums based on their coverage needs.

Does subrogation apply to all types of insurance?

Subrogation is commonly used in auto, health, property, and workers’ compensation insurance. However, not all policies include subrogation rights, and terms may vary depending on the insurer and policy type.

What is an endorsement (rider) in insurance?

An endorsement (or rider) is an amendment to an existing insurance policy that adds, removes, or changes coverage terms to meet the policyholder's needs.

What are the common types of insurance claims?

Common types include property damage, liability claims (e.g., personal injury), workers' compensation, professional liability (errors & omissions), auto insurance claims, business interruption, and cyber liability claims. Each type requires specific handling processes to ensure proper settlement.

What is an example of adverse selection in health insurance?

A person with a pre-existing medical condition is more likely to purchase health insurance, increasing costs for the insurer while healthier individuals may opt out due to high premiums.

What is baggage loss coverage in travel insurance?

Baggage loss coverage reimburses travelers for lost, stolen, or damaged luggage and personal items during a trip, up to policy limits.

What happens if I surrender my Whole Life policy?

If you surrender your policy, you receive the accumulated cash value, minus any surrender fees. However, surrendering cancels the policy, meaning no future death benefit for your beneficiaries.

How do insurers make a profit?

Insurers earn profits through underwriting (collecting more premiums than claims paid) and investments, where they invest premium income in bonds, stocks, and other financial instruments to generate returns.