General Insurance

The insurance contract that covers any type of risk other than life is called general insurance. These agreements make sure that a person or business is secured in situations such as property damage, fire, earthquake or accidents. The types of coverages under general insurance include fire, motor vehicle, commercial and medical insurance.

Unlike life insurance policy where premiums are paid throughout the duration of the policy, general insurance premiums are paid yearly in a lump sum. General insurance is considered as a contract for the purpose of security and not actually as an investment provided that you only get paid to recoup your losses or as an example suggested in the policy. If there is no insurance claim after the policy duration, the premiums paid are not returned to the policyholder. It depends on the insurance policy holder to renew the plan after a year.

 

General Insurance Types

Many people are not really aware of what general insurance is and why they need it. General Insurance secures the policyholder from losses from unexpected events and accidents and other unfortunate situation not covered in the life insurance.

Commercial Insurance

This type of insurance uses a defense solution for all fields of the business sector such as building, production, food and beverage, transportation, among others. Under the commercial insurance umbrella exists a range of other insurance policies which applies based on the type of business a policyholder owns. Commercial insurance shields businesses, its assets, and the workers.

Motor Vehicle Insurance

In the USA, if you possess a vehicle, you are mandated by legislation to purchase auto insurance. The argument concerning mandatory cars and truck insurance goes back to the start of the first car about 100 years ago.

Motor vehicle insurance offers to secure versus loss of vehicle or financial liability a car proprietor might deal with if the motor vehicle is involved in a collision leading to physical or residential or commercial property damages. There is a month-to-month premium paid in this kind of insurance and its quantity varies depending upon the kind of vehicle, driving history, chauffeur’s age and gender and place. Although there are certain states in the nation that do not mandate a car proprietor to carry automobile insurance, they have the choice to upload money bonds.

Health/ Medical Insurance

Life insurance is sometimes mistaken for medical/health insurance. That is very common but there really is a fine distinction between the two. Life insurance policy, from the term itself, secures insurance owners against the risks of life. Health insurance, on the other hand, is a kind of general insurance which covers medical expenditures up to a specific quantity.