Many clients purchase insurance to fulfill external requirements without really understanding how policies from insurance companies in Hartford CT work. Some examples are:
- A mortgage company requires a home insurance policy.
- A credit union requires the borrower to purchase an automobile policy covering damages. The department of motor vehicles requires a policy for liability.
- A company board requires a business owner to carry employee liability insurance.
Unfortunately, insurance mandates do not always protect the client. For instance, in the event of a car accident, the credit union and the DMV may be happy, but the client may be left with unexpected gap charges. The key is for clients to find out the gap charges up front and then consider a decision to pay an extra premium to handle those charges. The balance between the premium and the deductible is a part of managing risk.
How Does Insurance Offset Risk?
Insurance cannot help you if a person if he or she is hit by a bolt of lightning. Fortunately, this rarely happens. Much more likely is the chance that a person will suffer an accident to a home or automobile with damages beyond his or her capacity to bear. It is also fortunate that this only happens to one individual in a small group of people. Insurance companies in Hartford CT bring that group together and split the damages in the form of premiums. In this way, clients can protect themselves against the moderate risk of having to deal with expensive catastrophes on their own.