Your general liability insurance won’t come to your aid at this point. Thus, you might have to pay the penalties out of your own pocket, if the verdicts are declared in the favor of your resentful client. Well, you can always get professional liability insurance for the extra protection, which will serve you during such times.

Professional liability insurance (PLI) also goes by the name of professional indemnity insurance (PII). Individuals or companies offering professional expertise or services can stay protected against the client charges, with this sort of insurance coverage. Read along to know the facts that describe professional liability insurance.

Facts to know about professional liability insurance

Professional liability insurance is especially required by those who are self employed and follow a particular profession. The following facts will hopefully give you a fair idea what it is all about:

1. General liability insurance usually provides protection against the direct damages, and not for the client claims or civil court penalties. Professional liability coverage comes into action when certain charges against the insured lead to legal actions in the future.
2. This type of policy usually covers contract performance disputes, violation of good faith, unfair dealings, any financial loss due to negligence, error or omission in the services or the final goods delivered. It is more popularly known as the errors and omissions (E&O) insurance in the US.
3. Professional liability coverage is crucial for those associated with certain fields or profession, especially medical or legal. Professionals following the conventional lines of work are sometimes legally bound to have this type of insurance protection, like the accountants, architects, engineers, insurance brokers etc.
4. Any company can include this type of policy under their insurance portfolio, to be on guard against the client allegations. Company investors or VCs can also make use of its benefits.
5. The coverage limits are determined by the policy holder. This type of policy usually covers the legal expenses, as long as it stays within the policy limits. Thus, it provides for the court costs along with any type of judgment that goes against the policyholder like the compensations which he has to pay etc.
6. This type of policy not only provides financial protection to the insured individual or company, but also helps to maintain cordial relation with their respective clients.
7. One of the most essential points to be remembered about professional liability insurance is that, it doesn’t provide coverage for the criminal proceedings.

Professional liability insurance has especially come into foreplay, as a result of globalization. The exchange of products and services between the countries necessitates this type of protection. Service providers dealing with the overseas companies, thus often include this type of policy coverage as contractual obligation.

Mass manufacturing takes place in a factory. The assortment of machines necessitates maintenance. In case of any mishap or negligence, the factory insurance will serve its purpose, since such a policy covers the building, plants, machineries and stocks that are involved.

Coverage offered by factory insurance – When it comes to use

Hazards are usually not accompanied with premonitions. Factory insurance provides protection in cases of unpredictable mishaps, which hampers the smooth flow of production. It serves its purpose in the following scenarios:

1. When the factory incurs losses due to lightning, fire, explosion of machinery like gas or boilers etc.
2. It provides coverage during leakage from water tanks or pipes.
3. It offers assistance during floods or storms.
4. It even provides protection during special circumstances like riot, and for damages due to aircraft or road and rail vehicles.
5. During any other occurrence which causes breakdown of machinery or hampers the production process, for e.g. electrical failures.
6. In some cases, employer’s liability insurance and product liability insurance etc. are also included in the factory insurance policy.
7. The loss of business or financial assistance for business interruption is usually offered as optional coverage, in case of factory insurance.
8. Business owners can also buy coverage for goods during transit.
9. Sometimes coverage for personal accidents, or assaults to staffs are also included in the policy.

Types of contents that can be insured

Factory insurance policies provide coverage for the following contents in manufacturing units of a company or business:

1. The building or the plant where the production unit is established.
2. The machineries which are used for production.
3. The raw materials which are stored for future usage.
4. The finished goods and stocks.

Facts to know about factory insurance

The following details define insurance coverage for factories:

1. The best feature that can be associated with factory insurance is that, it provides a wide range of coverage. It provides financial assistance during almost all types of accidents, whether man-made or natural.
2. You’ll need to provide all the details about your business while buying a factory insurance policy. The details would include information regarding the type of products you deal in, the suppliers, and also about other business parties you deal with.
3. You’ll also need to provide details about the building and property, like the type of construction or roofing material used etc.
4. The insurance company will also seek details about the general contents of the company, including the furniture, machineries etc. as well as of the stocks, materials and all.
5. The insurer will try to ensure that the staffs as well as the machineries are well maintained.
6. The insurer will also take note of the security arrangements of the factory, and other mechanical or electrical equipments like the sprinklers or building heaters etc.

A lot of details have to be provided to your factory insurance provider, depending on the type or extent of coverage you seek. It is crucial to provide all the facts and figures correctly, as factory insurance ensures renovation of the manufacturing unit of a business after any mishap.

Same thing happens with a company. The directors and officers take up the major decisions of a company. They are held responsible for their choices by the investors, shareholders, government bodies, employees, creditors, suppliers, consumers and all others related to the company. Be it a private company or a publicly owned one, several risks are associated with any single decision of a company. Since the decisions are agreed upon by all, none of the business directors or officers wants to be blamed for the actions of the company. Directors and Officers Liability Insurance provides protection to the directors and chief officials of a company, in case they are sued for the management decisions.

When does a Directors and Officers Liability Insurance serve its purpose?

The directors and officers are accountable for the implementation of the company’s policies. They can be sued for several purposes, and that is when the Directors and Officers Liability Insurance (D&O Insurance) will provide financial protection. Have a look below to know when D&O Insurance lends assistance.

1. Management of investment decisions : If the investment decisions of a company are not taken properly, the portfolio of the company suffers. The directors and officers are accountable for the evaluation of the investment opportunities of the company. In case any of their wrong decision brings about a huge financial loss, they might be sued. D&O insurance acts as support during such critical junctures.
2. Disclosure of information : Certain information related to company are obscured from common knowledge. The directors and officers of the company have access to that specific information only and if they deem fit, can release any information. However, if the disclosure of information proves harmful for the company’s reputation or brings down the market position of the company, the responsible official can be held guilty. The D&O insurance policies protect the assets and the directors and officers of the company during such times.
3. Clash of interest : Some directors or officials might be associated with multiple companies. As such, they may have separate competitive interests. It is essential for the company to monitor such situations, as conflict of interests may lead to confusion amongst the company directors and officials. Shareholders and other investors try to make use of this type of confusion to have their way. D&O can be of assistance in such situations.
4. Decisions related to hiring and firing :  The directors and officers are not directly concerned with the hiring and firing decisions of the company employees. However, the company policies for hiring and firing are approved by them. Besides, they also look over the implementation of those company regulations. D&O insurance policies guard the individual directors or officials, if any of the terminated employees takes the matter to the court.

Each company has separate work environment and maintains its own set of rules. The D&O insurance policies are customized to fit the specific requirements of each separate company. The policy limits for claim amount or the term period thus vary accordingly. However, the majority of the D&O insurance claims are related to the employment practices, whereby an employee sues the directors and officers with charges of harassment or discrimination.

Well, you need to, since several factors influence auto insurance rates. A negligible deviation in any of the factors might make your costs go up. You’ll at least be able to reduce your auto insurance premiums, if you know how the insurers determine the rates for your auto insurance policy.

Tips to reduce your auto insurance cost

You need to know about the factors that affect your auto insurance policy, and how you can stay in control over them. You can make a note of them, if you want to cut down your expenses for auto insurance. The following tips will show you the way to go for it.

1. Compare market options – Once you have bought your auto insurance policy, it’s no use regretting over what you have missed. Shop around, prior to your purchase, to get the best deal amongst the available market options. Compare quotes and coverage before you opt for your car insurance.
2. Increase your deductible – You pay the deductible out of your own pocket, after you file a claim. If you agree to pay more as deductible, your insurance costs will go down.
3. Maintain clean driving records – Speeding tickets, traffic violations, DUI charges leave negative impacts on your driving record. The insurers check driving records, before allowing a policy to be purchased. Your rates are thus influenced by how your insurers evaluate you as a risk. A clean driving record helps considerably, if you want to enjoy lower auto insurance rates.
4. Avoid flashy vehicles – Auto insurance policies for flashier vehicles are supposed to be more expensive. Sports cars and expensive vehicles are more prone to accidents and thefts. The repairing and replacement costs for them are also going to be higher. So, you’ll have to pay more to insure them. Maintain a simpler vehicle, and enjoy affordable auto insurance premiums.
5. Install safety gears – If you have anti-lock brakes, automatic seat-belts, anti-theft alarms, air bags and other security devices installed in your vehicle, the insurers are going to reduce your auto insurance rates.
6. Avail discounts – You can avail discounts from your insurance provider, when you make a policy purchase. Many insurance providers allow discounts to loyal customers or to senior citizens. You can insure all your valuables under a single insurance provider, and ask for lower rates. You can even drive less to get ‘low- mileage discounts’. If you have multiple vehicles, you can include them under a single policy to avail of discounts.
7. Get rid of unnecessary coverage – You should know the type of coverage you need for your vehicle. You can get rid of unnecessary coverage thereby, to reduce your auto insurance costs.

Your credit score also influences your insurer’s decision, when he determines your auto insurance rates. A good credit score indicates that you’re less likely to miss out on the premium payments. Matured drivers enjoy lower rates than the teenage or new drivers. Female drivers are considered to be more careful, and thus can buy cheap auto insurance policies.

Auto insurance is a must, if you own a vehicle. It is only rational to seek lower rates for your auto insurance policy, since you have to continue with the monthly premiums. However, it will be unwise to compromise on coverage while you try to opt for affordable auto insurance.

What is auto repair insurance?

Auto repair insurance is not essentially similar to the conventional auto insurance policies. As the name suggests, it pays for the regular wear and tear of your car and for the mechanical repairs. Standard auto insurance policies only provide financial assistance when your vehicle meets with an accident, whereas auto repair insurance helps you out, in case your car breaks down. It thus pays for the regular maintenance costs like the scratches, dents or mechanical failures etc. Auto repair insurance will not compensate you if your vehicle gets damaged during collision, natural disasters or acts of vandalism.

Auto repair insurance thus acts as an extended warranty for your vehicle, after the term of manufacturer warranty gets over. It is actually a service contract between the vehicle owner and the insurer, whereby the insurer agrees to pay all the costs for the vehicle repairs. The time period for coverage is specified when the policy is bought.

Auto repair insurance coverage

Auto repair insurance is categorized based on the limit of coverage that goes along with it. While some policies only provide breakdown coverage, the standard ones pay the maintenance costs for the insured vehicle as well. You can buy a policy with all inclusive repair coverage, or can choose to insure the costly parts separately. Your rates for the auto repair insurance policy will be influenced by the type of coverage you opt for your vehicle.

Factors that influence auto repair insurance

Automobile repairs may weigh heavy on your pocket, if major vehicle parts break down. Having auto repair insurance will at least lessen your burden, since you can claim a lump sum amount for the necessary repairs, from your insurer. The premium that you have to pay for auto repair insurance is usually reasonable. The following factors are taken into account by the insurance providers, when they determine the rates for auto repair insurance policies.

1. The costs for repair – The market prices for the vehicles and the automobile parts are not fixed. They keep on escalating with time. Your rates will be determined by the estimated value of the repairs.
2. The age of the vehicle – The maintenance costs of a vehicle increase as it grows old, and so does the auto repair insurance rates.
3. The mileage of the car – The more you drive your car, the more will be the auto repair insurance rates on it.
4. The deductible for the policy – The deductible is the amount that the vehicle owner has to pay while making the insurance claim. It is a known fact, that a high deductible for an insurance policy lowers the rates charged on it. If the repair costs are less than the deductible that you have to pay, you must think twice before getting the auto repair insurance.
5. Other charges – Several other charges like the processing fees, surcharges, taxes etc are included in your auto repair insurance policy. These increase your overall costs for the policy.

However, you’ll need to find out specifically which repairs will be covered by the auto repair insurance policy, before you sign the documents. If you have a policy with partial repair facilities, and any other automobile part which is not covered by your policy, needs to be repaired, you’ll have to bear all the costs on your own.

The Classic Car Club of America specifies the cars manufactured between 1925 and 1948 as classic or antique cars. The cars can be imported from a foreign country or built in America itself. Again, the Insurance Information Institute (III) places their age requisites for an antique car to be 30 years or more. The insurance providers usually set their own rules to determine whether an automobile is antique or not. The general standards indicate cars produced 25 years ago as ‘antique’, and those manufactured within 15 to 25 years as ‘classic’.

Why insurance is a must for antique cars?

If you own an antique car, you must have treasured it for long. You might have spent a lot of money for its maintenance, or used up a major portion of your savings to buy one. An antique car even acts as a status symbol for some. You’ll thus ensure its protection with an antique car insurance policy, for the following reasons:

• You are emotionally attached to your antique car.
• Unlike conventional automobiles, the market value of antique cars doesn’t depreciate with time. Instead, the value of an antique car boosts as years roll by.
• The repair costs and the value of an antique car are supposedly higher than the conventional automobiles.
• The chances for theft are higher for your antique car, due to its increased market value.

If you have antique car insurance, the insurance providers will pay for any mishap that might affect your beloved vehicle in the future. You won’t need to lose your sleep while standing guard over your prized possession. Since the costs for repair or replacement will be higher for your car than the regular automobiles, antique car insurance will be the safest way out of the future expenses. You don’t have to lose more of your savings, if you buy an auto insurance policy for your antique car.

Factors considered by the insurers

The auto insurance providers note down certain details about your car, before they allow you antique car insurance. The rates for your policy, as well as the amount you can get when you file a claim, are determined after considering the below mentioned factors:

1. The age of the vehicle.
2. The model and make of the vehicle.
3. The value of the vehicle.
4. The amount of usage for the vehicle.
5. The purpose for which your antique car is used.
6. The security measures for your vehicle, for e.g. the garage where it is to be stored or the installed security devices etc.

The insurance provider and the vehicle owner mutually settles upon an ‘agreed value’ when the policy is purchased. The vehicle owner is paid the entire amount, without any depreciation, during a major loss or theft.

Restrictions imposed by the insurers

The insurance providers usually impose certain restrictions for the usage of the vehicle, as mentioned below:

1. They limit the usage of the vehicle. They fix your rates on your antique cars mileage per year, i.e. how much the vehicle is used.
2. They impose restrictions on the person who drives the vehicle. Usually persons with good driving records are allowed to buy an antique car insurance policy.
3. They, sometimes, seek proof that you have another vehicle for your daily usage.
4. They even determine how your car is to be stored.

The only advantage that you can get out of an antique or a classic car insurance is that, the rates are usually low for the policies. The lesser you use the vehicle, the lower your rates will be.

This kind of global ambiance prompts individuals to take notice of their personal safety. Kidnap and ransom insurance has thus been devised to provide protection, when your safety or the safety of your close ones turns into a risk.

Kidnap and ransom insurance, also known as K&R insurance, had been especially functional in particular regions of the world. Countries like Mexico, Venezuela, Haiti, Iraq, Afghanistan, Nigeria etc. are marked as high risk areas where people are subjected to such threats. However, since kidnapping, extortion, wrongful detention, and hijacking have turned into a global phenomenon, K&R insurance is nowadays not limited to specific countries only.

As the name suggests, the kidnap and ransom insurance option provides assistance during abductions and extortion. Read along to know when your K&R insurance will lend you a helping hand.

How will kidnap and ransom insurance come to your aid?

A kidnap and ransom insurance will be able to help you in the following ways:

1. The insurance provider will compensate you, in case you have to pay a lump sum amount as ransom, or if you had fallen prey to cyber extortions.
2. It even helps during negotiation, and arrangement or delivery of funds to the kidnappers and extortionists.
3. It pays for the independent security guard services that you make use of. It even arranges the fees when you consult a security advisor or a crisis management consultant on your own.
4. It provides financial compensation for the rehabilitation costs and expenses of the victims.
5. It pays you for the independent legal expenses.
6. It provides you assistance when a government or political terrorist is involved in kidnapping cases.
7. K&R insurance also provides coverage for your personal financial losses.
8. It will bear the costs, if the insured needs medical attention, post- release from the kidnappers.
9. It even pays for the reward money that is given to the informers, provided the information is valuable, and leads to an arrest and conviction.
10. It pays the insured for business interruptions as well.
11. A kidnap and ransom insurance provides financial assistance to the family members, if the insured is killed or meets with accidental death during the kidnap.
12. It helps out when the kidnapped person becomes permanently disabled, due to the atrocities meted out to him when he was held captive.
13. Usually, the insured doesn’t need to pay any deductible, for this type of policy.
14. Sometimes, K&R insurance even pays for the kidnap prevention trainings.

Who can be insured with kidnap and ransom insurance?

Nowadays, the leading corporations arrange for this type of insurance policies to protect their employees. The insured persons thus include:

1. The leading officials of the company like the CEO, directors etc.
2. Other employees who might be working on a full-time, part-time, seasonal, leased or temporary basis.
3. The volunteers or interns serving the corporation.
4. The independent contractors working for the company.
5. The relatives of the employees.
6. The guests living within the company premises or in any of the worker’s home.
7. Any other person abducted for the company.

Kidnap and ransom insurance policies even provide war and terrorism coverage, and ensures the safe return of the victims. This kind of policy can be helpful for the professionals who travel a lot, for business purposes or otherwise.

• Don’t delay the purchase – This is the worst and primary mistake people make as far as purchasing insurance is concerned. Waiting to buy coverage is like standing around for a disaster to happen. It is important to take action right at the outset instead of delaying the process till a critical point in time. Accidents by definition are unpredictable and therefore home and auto insurance policies need to be purchased as soon as you make the first down payment. It is advisable to purchase life insurance as soon as you can afford it simply because the older you grow, the costlier the policy gets. The same principle applies for health insurance as well.

• Don’t buy the cheapest coverage – The cost of coverage is important when you choose to buy insurance and the less costly the policy is, the more appealing it might seem. You must always remember that the cheapest policy isn’t the best and the best policy isn’t the cheapest. There is no point in compromising the extent of coverage in order to save a few dollars. You just might end up spending more than you have saved in case you meet with an accident which results in the loss of life or an asset. Cheaper policies might not provide coverage for certain events or exclude certain provisions which might be necessary. The best idea is to talk to an agent and find a policy which strikes the appropriate balance between cost and coverage.

• Don’t miss or skip payments – As most of you already know, depending on the situation, there are some insurance policies which you just can’t do without. In the United States, it is an offence to be driving without auto insurance and you may be charged with a civil offence. Banks and mortgage companies also require homeowners to carry a certain amount of coverage. Missing a payment entirely or making late payments can lead to the cancellation of your policy or have adverse effects on the premium rate during renewal.

• Don’t forget to update your policy – Your assets and their values don’t stay constant through the years. Some assets like houses and fine art appreciate in value through time while other like vehicles and health depreciate. In case you forget to review your policy, you might end up omitting coverage for something extremely important. You also need to get your assets appraised before you decide to update you policy.

• Don’t think you have enough coverage – One of the leading insurance companies conducted a survey recently and conclusively illustrated that most people think that they have the perfectly adequate amount of coverage. In reality, people are covered minimally and are prone to financial disasters triggered by loss. Review you policy from time to time and adjust the amount of coverage according to your growing needs. Don’t forget to consider long term costs (like retirement and children’s tuition) when you purchase a policy.

Insurance is important and it is essential that you do your homework and study the various products carefully before you choose one. Make sure you can trust your agent and have a thorough understanding of all the provisions of the policy.

• Child life insurance plan – The actual idea behind buying a life insurance policy is to ensure that your family’s financial security in case the worst comes to pass. A life insurance policy is meant to cover the monetary gap left behind in the event of the primary breadwinner’s death. A child is neither a breadwinner nor does he make any financial contribution towards the household. Moreover, you can expect your child to grow up safe and healthy without making too much of an assumption. Therefore, investing in a Roth IRA, a 529 plan or a college education fund makes more sense than spending money on your child’s life insurance premium.

• Specific disease insurance – Most health insurance policies have glaring loopholes in them which you usually won’t recognize unless you end up in one. The primary fear of being afflicted by some disease which is not covered under the regular health insurance plan prompts people to invest in policies which are apparently designed for specific diseases. This has led to the growing popularity of such policies, especially cancer insurance, over the last few years. Purchasing these supplemental policies to fill the coverage gaps in a general health insurance policy has become a steady trend. The problem with these policies is that they are so specific that they do not necessarily cover the medical cost comprehensively. The biggest example of this fact is that cancer insurance policies do not carry coverage for skin cancer which is the most commonly occurring form of the disease. Therefore, it’s a better idea to invest you funds in purchasing a more comprehensive health insurance policy or upgrading the present one.

• Mortgage life insurance – This particular insurance policy may seem quiet reasonable at first glance but if you look a little deeper; you will find the fallacy of the concept. The mortgage life insurance policy is designed to pay off the mortgage on a property in the event of the insured’s death. It seems like something people should consider purchasing but the fact of the matter is this; a good life insurance policy will have an adequate death benefit to cover the family’s financial needs which also includes the mortgage payment. There is absolutely no need to get this policy unless you have pre-existing conditions which prevents you from getting an adequate life insurance policy.

• Credit card insurance – Purchasing a policy for paying off your credit card bills in case you are entirely unable to do so seems like a good idea on the surface. The logical argument against purchasing this type of policy is that you will be paying a monthly premium on the policy and carry around a credit card debt as well. It makes much more sense to use the monthly premium amount to pay the credit card bills. This way you will be rid of the debt faster, save money on interest and avoid the hassle of having to pay an extra bill.

Purchasing an insurance policy to cover a specific need is not an easy task. You need to put enough research work into it before deciding to purchase specific coverage. It’s a better idea to take stock of your existing options and policies and see if they can be upgraded or supplemented to meet your needs.

Homeowners are protected against most perils by the standard or the broad form policies. Fire, lightening, wind and smoke damage will almost always find coverage under regular homeowners policies. If you objectively look at the coverage provided by these policies, you are in for a rude awakening. As a rule of thumb, no standard homeowners policy carries coverage for floods and earthquakes. In case your home is located in an earthquake and flood prone zone, your mortgage company will push you into buying coverage for such disasters separately. Here are some of the things you might want to know about

Flood insurance

• Coverage – Flood insurance covers damage to your property caused by flooding. A standard flood insurance policy would cover structural damage to the building and its foundation, the electrical and plumbing systems, carpeting and appliances, heating and cooling systems and flood debris cleanup cost as well. The are policies which would also cover the contents of your home as well as certain valuable items up to a predefined limit.

• Special Flood Hazard Area (SFHA) – The National Flood Insurance Program or the NPIF collects flooding data and forms a map out of it. This particular map is known as the Flood Insurance Rate Map (FIRM). The SFHA are marked on these maps as potential zones of flooding. The NPIF’s floodplain regulations make it mandatory for homeowners located within the SFHAs to purchase flood insurance. Mortgage companies will also require you to carry flood insurance in case they feel that your property is located in a relatively hazardous zone.

• Federal program – You can obtain flood insurance if you live in a community that participates in the NFIP. Through the enforcement of certain flood plain management regulations and ordinances, a community can become eligible to participate in the NPIF. Federal Emergency Management Agency (FEMA) is the parent body that runs the NPIF and is responsible for issuing flood insurance coverage.

Earthquake insurance

• Coverage – In most cases, earthquake insurance is sold to homeowners as a rider or endorsement attached to the standard homeowners policy. The deductible for earthquake insurance is based on a percentage of the overall policy limit which usually stands at 15%. The deductible can go as low as 2% in some cases but states with a high frequency of earthquakes mandate homeowners to carry a larger deductible.

• California Earthquake Authority (CEA) – The CEA was formed by a collection of insurance companies after the last major California earthquake devastated the state and caused millions of dollars worth of damage. CEA member insurers are the only insurance companies who sell proper broad form homeowners insurance policies drafted specifically to cover earthquakes. Policies issued by CEA member companies usually provide coverage for the basic dwelling which means that coverage for structures like garages and swimming pools are not included.

• Special provisions – Insurance companies charge a higher premium on earthquake coverage policies. This is because they are required to provide coverage to property owners by law even if the property doesn’t meet building, health and safety codes. Retrofitting acts such as reinforcing the foundation of a structure, riveting, bolting and retrofitting substructures within the building will attract lower premium rates and discounts.

Even though catastrophic events such as earthquakes and floods are rarer than minor hazards like leaking pipes or damaged floors, they cannot be ignored. It is essential to buy such coverage to protect your property in case the worst comes to pass.