A general insurance company is an organization that provides insurance to people. And companies on events such as death, damages caused by natural disasters, illness or accident in exchange for money and promise of future payments. It also provides protection against risks, such as crop failure or industrial mishap.
The total market capitalization of the general insurance industry in the US was approximately $1 trillion (as of December 2015). It consists mainly of two types of companies; life insurers underwrite new policies while companies like Fireman’s Fund insurance existing policies.
About general insurance
General insurance is a form of property insurance that covers all types of property, including buildings and their contents, land, commercial vehicles, personal belongings and other forms of property.
General insurance is a form of property insurance that covers all types of property, including buildings and their contents, land, commercial vehicles, personal belongings and other forms of property. Insurance companies offer a wide range of cover options, including goods in transit, stocks, bonds and cash. They also provide personal liability insurance for corporate officers and directors.
Insurance Policies
General insurance policies are designed to protect individuals against financial loss resulting from a variety of events such as natural disasters, death or illness, fire or theft. General insurance companies also sell commercial liability policies that protect businesses from claims of products liability or personal injury.
It is used by both individuals and corporations to protect themselves against losses resulting from a wide range of events including fire, theft and natural disasters. It deliver the protection through three basic policy types: property, casualty and life/health coverage.
Benefits of their policies
General Insurance protects a client from unexpected occurrences in life. It covers the damage or loss of goods and makes it financially viable for clients to deal with the loss of their assets. General Insurance companies also protect a person in case of any unfortunate situation. General insurers provide contractual assurance that covers both physical and financial losses for the insured, whether it is due to natural calamities, death and illness, fire, accidents or industrial hazards. Benefits of general insurance cover to protect the client against unexpected loss of their belongings and are worth more than money.
Types of insurance
There are three forms of insurance that an individual can avail – property, casualty and life/health. These differ from one another in terms of the types of risks covered, amount insured and a client’s age.
Property Insurance
Property Insurance covers all items that are not permanently affixed to land such as furnishings, home appliances, cars or recreational vehicles. A property policy also protects the physical integrity of one’s house or building (including contents) should it be damage by fire or other means.(e.g., lightning strike).
Casualty Insurance
Casualty Insurance covers personal items, such as one’s clothing, jewelry, watches and other valuables. It also covers repair or replacement of one’s home in the event of damage.
Life/Health Insurance
Life/Health Insurance covers an individual, either individuals or families. Life insurance is meant to provide financial security to those with dependents in case of death while health insurance covers medical expenses.
Among the three types of insurance policies, property insurance has emerged as the most popular choice for people who want to protect their assets against risks and losses. Property policies offered by general insurers typically include coverage for items like:
Homeowners’ policies
These cover a person’s home and all its contents against damages resulting from fire, smoke or flooding (etc.).
Auto insurance
This covers automobiles against damages in case of an accident.
Personal belongings coverage
It covers all the items that are carried by a client during a journey such as handbags, wallets and laptops. Personal belongings cover is a valuable asset for individuals and families. The policy pays for the loss of an item or damage to one’s handbags, wallets, laptop screens/batteries and other such valuables.
Building damage insurance
This covers damages to property due to fire or water damage. It also covers structural damage caused by storms (such as snow) in the event that failure occurs in the building due to weather-related factors. Insurance companies offer personal belongings coverage for all types of items that are carried by a client during a journey. The policy covers for loss or damage to the items, but it doesn’t cover for damage caused due to natural wear and tear or inherent defect.
Conditions and exclusions
Whether one insures their property with a general insurance company depends on several factors including their requirements, desired coverage and price. General insurers offer different types of policies. Some of them have similar benefits but vary in terms of their conditions and exclusions. Some common terms use in the insurance industry and the conditions related to each term are explain below:
Bodily injury
Bodily injury is an injury cause by an accident or mishap. According to the US Department of Labor, the injury must be capable of causing a disability.
Personal belongings coverage
Personal belongings coverage is a type of coverage that covers one’s clothing, luggage and other personal belongings. However, items like jewellery, watches and laptops are exclud from this cover.
Personal liability
This covers damages caused due to an individual’s negligence in an accident or mishap. It also covers injuries due to an intentional act. Personal liability is one of the most common policies offer by general insurers as it guarantees financial security for companies. And individuals against losses arising from accidents caused by their negligence or intentional acts.