So, it may feel like a victimless crime to “get creative” with your insurance paperwork. It’s estimated that 35 million Americans have lied to their insurance company at one point in their life. Almost one in three have lied on their auto insurance, and another 22% regularly lie to health insurers. It’s entirely understandable, though. Insurance fraud wouldn’t be so prevalent if people didn’t consistently get away with it. And people wouldn’t get away with it so often if insurance companies weren’t already overwhelmed by fraud cases.

And what about the insurance companies? They cry and moan about the cost of fraud – but the reality is: they can afford it. They know they don’t have to catch everyone to make their bottom line. Fraud is anticipated. It actually happens, and is reliably predicted every year. It’s already been priced into their models. “Fraud rose by 11% last year? Better hike the premiums, otherwise C-suite won’t get their ninth-straight year of record-breaking bonus checks.”

It’s hard to have sympathy for anyone here… But the point is, insurance companies aren’t the victim. You are. You always are.

When a fraudster gets a payout, that’s less money the company has to pay out your legitimate claim. And if you decide to defraud your insurer, count on never sleeping well again. Lying on a claim or application is like having a loaded gun permanently aimed at your foot. The statute of limitations for fraud prosecution usually extends six to ten years after the crime was committed. So if, at any point during that time, you get caught? You’re absolutely screwed. Like, “life is now permanently harder for you” screwed.

For one: depending on the severity of the fraud attempt, your premium could triple in size. That is, if they even let you keep the policy after what happened. If the “fraud” could be construed as an “honest mistake” – say, your assistant did the paperwork and testified their negligence – you might get to keep the original policy at a higher rate.

But if your actions fit the classic “steal and conceal” definition of fraud? You’re going to court, and you’re going to lose. For the rest of your life, you’ll struggle to find an insurer who’ll touch you with a thirty-foot pole.

Insurance fraudsters never seem to realize the irony. There’s nobody better at detecting and punishing fraud than the very people they’re trying to rip off. It’s just that, long ago, insurance companies realized fraud was inevitable, impossible to prevent. So, it became a simple matter of calculation: To stay in business, don’t spend dollars recovering dimes.

And that’s the only reason anyone gets away with it. If you do – you’ve taken a risk so severe, beaten odds so slim: you almost deserve the money.

Unfortunately, most people who attempt insurance fraud have zero experience in either, uh, “industry.” False insurance claims are often a fraudster’s debut; poorly-concealed, transparently amateurish attempts to snag a payout. They’re almost always shocked when they get caught. Many of these criminal debutants ultimately aren’t even charged with fraud because their attempt to conceal the illegal activity was so unsophisticated – any reasonable person could’ve noticed, and the legal definition of fraud doesn’t apply.

But even if you’re not officially charged with fraud, the company has hard evidence showing you tried it once. Statistically, you’re very likely to try it again. And they’re all too happy to share that information with other insurers, effectively branding you for life. In a world where certain forms of insurance, like auto and homeowners, are mandatory: that can make for a disastrously expensive existence.

Getting caught for insurance fraud invariably means enormous financial penalties, jail time, likely, depending on your state of residence, and the impossibility of you ever finding insurance again.

Don’t even think about it.

Maybe you’re a young driver without a credit card or loan history. Maybe you’ve avoided credit cards because, like me, you’re pathologically afraid of owing money. Or maybe you weren’t scared enough, tanking your credit early in life. Whatever the situation, credit score remains a critical determining factor in how more-traditional insurance companies determine your rate. If you’re thinking about purchasing or financing a car – take a look at your credit score first. A few months of credit rehabilitation could save you thousands of dollars in insurance premiums down the line.

Credit scores – also known as FICO scores – fall between 300 and 850. They’re generated from a large sample of variables to condense your “creditworthiness” down to one metric. Essentially, it shows lenders how reliable you are with money and paying debts. If you have a high score – anything above 750 – you’ve been paying bills in full, on time, for years and years. Lenders feel that they can trust you with access to more credit, and reward you with lower interest rates on any debt you carry.

In this case, a higher score also means access to more and better insurance.

But if you have a low credit score or no credit history, it can make for a difficult existence. Modern society runs on credit. If you want to take a flight, book a hotel room, or make any large purchase, you’ll be asked to supply some type of credit reference. And those 300 points you get for just being alive? They don’t go very far in proving your creditworthiness. It’s not impossible to access credit with a low score. It’s just, until you’re able to improve your credit score, you’ll likely only be offered very high-interest rates on loans. And be prepared to get rejected outright when applying for certain things, like insurance policies or mortgage(s).

But why, exactly, do car insurance companies want to see your credit score? You’re not borrowing money from them, so why do they ask to see it?

They do it to gauge risk.

Study after study has shown that people with lower credit scores are more likely to file a claim, tend to file many claims, and have more expensive claims. Not the case for high-scorers. And statistical insights like that are an insurance company’s bread and butter. By having a mathematical equation with lots of variables, they can determine just how much of a risk you pose to them with a high degree of granularity.

Nearly every insurance company uses this kind of credit-based insurance scoring – in combination with demographic information, driving history, geography, property value, and claim history – to predict, with startling accuracy, the kind of claims you’re likely to file.

Since the price of your premium is tied directly to these insights, it’s almost always worth setting back plans for a few months to focus on building or raising credit before starting down the road of any significant purchase.

Having pet insurance could prevent you from having to choose between a best friend’s life and all your money.

What Does Pet Insurance Cover?

A basic pet insurance policy covers the costs of basic diagnostics, like x-rays, blood tests, and annual checkups. It’ll also provide coverage for some essential treatments – but the particular services covered vary from plan to plan. You’ll have to do a bit of research to figure out what policy is best for your pet.

When shopping, first consider any medical expenses your pet already faces. Those expenses are bound to occur, so the plan you pick should cover certain or near-certain events. However, some owners may decide that accident-only coverage is best if their pet is already in good health and money is tight.

Having grown up around dogs, I think the proper “middle-ground” plan for a young pet includes accident coverage and reimbursement for necessary preventative costs. It’s flat-out irresponsible not to spay, neuter, and vaccinate your animals. In some cases, it’s against the law to have a pet that’s unvaccinated against certain deadly transmissible diseases like tapeworm and rabies. And if your pet’s a little older, it’s also important to consider potential additional costs, like medication or physical therapy. Basic accident and illness coverage isn’t really enough for aging animals.

In any case: you’ll want a pet health insurance policy with an open-peril policy rather than named peril. Open peril means pretty much everything is covered unless it’s specifically called out as an exclusion. Pets are way, way too unpredictable to benefit from the strict limits of a named-peril policy.

On that note: let’s discuss what isn’t covered in a typical pet insurance policy.

What Isn’t Covered?

It doesn’t matter which pet insurance company you went with or how much coverage you bought. Your pet will never be covered for everything. The most common snafus owners encounter when dealing with pet insurance involve waiting periods, chronic conditions, and pre-existing conditions.

Most pet insurance policies have waiting periods that prevent you from claiming anything until 2-3 weeks have passed. The exact length varies, but insurers use it as an extra layer of fraud protection – preventing owners from making claims right away or making claims for pre-existing illnesses that they were already aware of before purchasing coverage. Many new insurers offer shorter waiting periods of 2-3 days now, but certain conditions like hip dysplasia and cruciate ligament deterioration still retain months-long waiting periods.

Since veterinary records are openly-available: your policy won’t cover conditions that’d already been diagnosed, or that your pet showed symptoms of before those waiting periods ended. So, for example: if your insurance states that they cover diabetes treatment under a basic policy, they’d still only reimburse you if your pet was diagnosed with diabetes after your policy went active.

Final thoughts:

It should go without saying, but pet insurance is for your pet. You can’t use it for human medical care. You can’t even use it for another pet, if you have more than one.

You heard that right: if you share care of your pet with a partner, that basic pet insurance policy will only cover expenses in the policyholders’ name. The insurance company can only share reimbursement with married persons. And that basic policy won’t cover more than one pet, either. You’ll want to make sure you have a separate policy for each pet.

Or, look into your insurers’ options! They’re happy to sell you more coverage, and it’s never been easier to customize a policy. Multi-pet discounts are becoming a popular incentive, and it’s only a small fee to add a second owner to an existing policy.

Moving.

It’s an expensive, time-consuming, exhausting, alienating experience that, past a certain age, we rarely choose to undertake. It requires an almost superhuman ability to plan. But according to the U.S. Census Bureau, Americans move an average of 11.7 times in their lives. That’s 11 opportunities for your couch to fall down the stairs. Eleven shots to shatter that glass coffee table. Eleven chances for those “movers” to “move” your “property” to a “new home” where you “have to file a police report and never get it back.”

But the good news is, there’s moving insurance.

It’s relatively cheap, short-term in scope, and could even be included in an existing renter’s insurance policy. Or, if you’re already a property owner, many homeowner’s policies also cover your possessions while they’re in transit. However, if you hire a moving company: personal renters or homeowners insurance policy likely does not extend to them.

In that case: the moving company itself often offers insurance to protect your valuables. Overall, you’ve got three options if you’ve booked a moving company:

Released-value protection

Free stuff is rarely worth it, and this is a perfect example. This kind of insurance comes at no additional cost and is included in the base fee. Amazingly, claims are measured in poundage – usually covers 60 cents per pound of damaged, stolen, or lost item, no matter the article’s actual value.

You read that right. Cents. So if the movers drop your 10-pound custom computer: you’ll receive a reimbursement of $6.00. Always check with your movers before you sign the contract to see if this kind of insurance is included, or if there’s an additional fee. Look even harder if it’s a man-with-a-van situation. They may not be insured, at all.

Full-value protection

An upgrade from released-value protection, this coverages means you’ll be reimbursed the total replacement value of anything damaged or lost during the move, if it can’t be repaired. However, high-value items like jewelry, art, and collectibles are usually excluded.

The rate is usually 1-3% of the total claimed value of belongings moved for full-value protection. So if everything you own is worth $20,000 you’d have to shell out $200 for a full-value policy. And with these plans, you’ll probably have to pay a deductible if you make a claim.

Third-Party

Look into third-party moving insurance if you really want coverage – including protection against natural disasters on moving day.

This additional coverage includes all the protections discussed above. Plus, third-party liability insurance covers the market value of lost, stolen, or damaged items – not just poundage or repairs. However, this kind of coverage comes at a price. Usually, the insurer demands an upfront fee of up to $2 per pound of belongings.

One last thing to keep in mind: Certificates of Insurance.

If you’re moving into an apartment, condo, or otherwise shared and managed building – make sure to request the COI from the building manager to prove that movers are insured against any damages they themselves might cause to the building. Picture the dreaded, stereotypical example of a dropped piano.

Hopefully, you already have a thorough understanding of any existing homeowners or renter’s insurance. Call your agent and discuss your options before considering aftermarket insurance. But, when it’s time to move: always consider your options. Anything that can make the experience less stressful is worth it.

1) Theft and burglary:
A burglary happens all over the country. Unfortunately, some people are victims of this crime more than others due to their lives or work. If you have valuable items in your home that could be stolen, it is vital to protect them by having insurance coverage on those items.
Also, if someone breaks into your house, you may need insurance to cover the cost of repairs or replacement items if they were damaged during the break-in.
In addition to protecting yourself from theft and burglary, there are other reasons why you might want insurance coverage for your home, including fire damage caused by lightning strikes or falling trees hitting a home’s roof, causing it to collapse onto the property below.

2)Medical expenses:
Medical expenses can be very costly, especially if you are not covered by insurance. If you are injured in an accident or become ill, your medical bills could pile up very quickly. Insurance can help protect you from these costs and ensure that you have the coverage you need to get the care you require.
Medical insurance also covers mental health care, which is essential if you have a mental illness. Mental health care can be expensive, and without insurance, many people would not afford the treatment they need.
Insurance can also help protect you if you require long-term care. This could include nursing home care or assisted living.

3)Life insurance:
No one knows when their time will come, but it is crucial to have life insurance if something happens. If you are the primary breadwinner in your family and something happens to you, your loved ones could be left struggling financially. Life insurance can help protect them from this possibility and ensure that they can still maintain their current lifestyle even if something happens to them.
In addition, life insurance can help cover the cost of your funeral and burial expenses. This can be a great relief for your loved ones in their time of need.

4)Disability insurance:
Disability can strike at any time and leave you unable to work. This could lead to a loss of income and put a lot of strain on your finances. Disability insurance can help protect you from this possibility by providing you with a monthly payment to help you cover your bills and other expenses while you are unable to work.

5)Car insurance:
If you are involved in an accident, car insurance can help protect you from costly repairs or replacements of your vehicle. Car insurance also covers medical expenses if you are injured in an accident. This can be a lifesaver if you are not covered by health insurance.
Car insurance is also required by law in most states, so you need to have this coverage even if you do not think anything will happen to your car.

6)Pet insurance:
If your pet becomes ill or needs surgery, the cost can be very expensive. Pet insurance can help you cover these costs so that you do not have to worry about how you will pay for your pet’s care.
In addition, pet insurance can help you protect yourself from liability if your pet causes damage or injury to another person or their property.
You also need to have pet insurance if you will breed your pets, as this coverage will help cover the cost of care for any puppies that you may produce.
Puppies can be very expensive, and having pet insurance will ensure that you do not go into debt trying to provide them with what they need.

7) Home Insurance:
If you have an accident at home, it can be costly to repair any damage caused. Home insurance covers the cost of repairs, replacements, and even medical expenses if someone gets hurt on your property.
It also protects you from liability if someone gets injured or their property is damaged while on your premises. In addition to protecting your home and possessions, it is also required by law in most states.

As a result: there’s surprisingly little we can do to prevent identity theft, in the grand scheme. Amateur cybercriminals may go after you, personally – but the professionals know not to bother. They’re too busy hacking those 3rd parties who hold everyone’s data — more money in that line of work. See, for example: the recent Facebook hack, where hackers stole the location data and search histories of 30 million people. That information is worth a whole lot more than the contents of some random checking account. And there’s nothing we can do to stop it.

That said: you don’t have to live a paranoid, reclusive life to be reasonably safe online. Those devastating organizational hacks are much rarer, and their perpetrators far more sophisticated than the low-level hackers who’d go after your identity. In the latter case, online personal protection is a matter of identifying the path of least resistance to your sensitive information and patching it up. For most of us, that involves two actions: software updates and password maintenance.

Software Updates

People are notoriously bad at keeping their machines up-to-date. How many times have you opened a friend’s computer, only to discover that it’s running an operating system two, three, even four iterations behind?

Apart from practical concerns like speed, functionality, and access to new features – out-of-date software and applications are a security hazard. Many of the most-common cyberattacks directed at individuals rely on flaws in outdated software. Web browsers, pdf readers, spreadsheets, and word-processing tools are all vulnerable.

Take, for example, the WannaCry ransomware attack of 2017. Affecting 200,000 Microsoft computers in 150 counties – this cyberattack targeted victims who had not applied a crucial security update, which had been available for weeks. Unfortunately, many organizations and businesses using the systems did not bother to install the patch – citing 24/7 operation, lack of personnel, or ignorance of the importance of the patch.

The hack caused over a billion dollars in damage.

Keeping software up-to-date gives you a much lower chance of becoming a malware victim.

Software companies endlessly monitor and test their products for new hacks, new vulnerabilities, new exploits that they didn’t catch the last time around. Just set your machine to auto-update. You’ll be thankful you did.

Password Maintenance

It’s absolutely insane that we still rely on passwords. They suck. We shouldn’t be using them.

I realize that I’m getting too emotional. But this is one of my most sincerely-held opinions. For one, most people dramatically misunderstand how passwords, in general, actually work. On top of that: the sophistication of password hackers – and the programs they use to decode them – has risen exponentially in recent years. Hackers can crack even the most difficult, obscure passwords in a matter of days. Even if your password is something like “Gmail123!” – one that meets the requirements of a “strong” password – the Hashcat program can guess it in about 6 hours.

Worse, studies show that most people reuse their passwords at least once. So if that hacker gets into a low-security account, it’s all the easier for them to access a high-security account.

But, in our world, there are still plenty of places where we need to use passwords. And even though studies have shown we’re not actually that bad at remembering passwords – nobody can remember the dozens of unique, solid, and randomized passwords required to browse the internet safely.

But good news! There’s a solution: password managers.

Consider applications like Lastpass, 1Pass, or Bitwarden. These programs were designed for one purpose: to create, secure, and keep track of good passwords. And they all work on the same concept. I’ll explain, in brief:

You create a vault protected by a “master password” in which all your other passwords are stored and encrypted. Those passwords can also be changed/created by the password manager to be lengthy, random, unguessable, and hard-to-remember. So, all you need to do is remember your master code – and the program does the rest of the work.

It may feel unwise. After all, what if a hacker accesses your 3rd party password manager? Isn’t my head the safest place to keep this information? But, the risk of a low-level criminal successfully reusing one of your passwords, stolen or leaked from elsewhere, is still far greater than a sophisticated hacker targeting your database of passwords. Some password managers even store your information, encrypted, in the cloud – an enormously expensive security procedure, making the data nearly impossible to access. As a matter of fact: LastPass has been hacked twice! But in both breaches, no passwords were stolen because they were stored so securely.

Password managers genuinely are the safest option for our current cyber-climate. Explore the options, and see which one offers the right features for you. Most of these programs are free, or low-cost.

Come on: we’re all guilty of it. We just love to do stuff that isn’t driving, while we’re driving. Fiddling around with Spotify at stoplights, eating entire meals in bumper-to-bumper traffic, trying to snap a picture of that idiotic vanity plate. Occasionally, all at once… These days, I usually take the Subway. And the streets are probably better off without my tiny attention span.

Because on average, distracted driving is responsible for around 3000 fatalities each year.

There are three kinds of distraction at play on the road. In increasing order of severity: visual, manual, and cognitive. Visual distractions are the most benign – anything that takes our eyes away from the road, like an accident in the median or one of those flailing tube-men from an auto dealership. It’s an inevitable part of driving.

Manual distractions generally have worse outcomes but are more preventable. Things that cause us to take one or both hands from the wheel – like texting, eating, applying makeup, or fiddling with the music – are a matter of impulse control. But cognitive distractions are worse because there’s little we can do to prevent them. If you’ve ever made a long-haul drive, especially at night, you’ve probably experienced “highway hypnosis.” The tendency to lose one’s sense of space and time while driving on long, flat, straight roads. Maybe you’ve even caught yourself nodding off at the wheel. In any case, the best solution to cognitive distraction is simply not to drive at all. Driving requires mindfulness from us. 

But we’re hurtling down the pavement, at 80 miles an hour, in steel death cages full of explosive gasses, and some of us still can’t muster the willpower to keep our hands on the wheel and not text back “LOL.”

But there are more incentives to safe driving than just keeping out of hospitals and jails. For one: many insurers offer apps and plug-in devices, which actively track your behavior while driving. It’s not a new concept – pioneered in 2003 by Progressive, with their Snapshot program. After all: if our phones can already record steps, what other physical phenomena could they record? And how could that data be helpful to insurers? If the data recorded shows that you’re an exceptionally safe driver – that you drive the speed limit, brake easy, turn smooth, and otherwise don’t rattle your phone’s accelerometer – it means you’re a lower risk. Less of a chance that you’ll file an expensive claim. So, to keep that state of affairs in place, insurers will offer discounts on their premiums based on this data.

The policies exploded in popularity, and many people drive more safely as a result And now that the technology’s caught up, almost every auto insurer offers a program like it. But it’s a double-edged sword. Because if you enter the program and prove to be a risky driver? Your rates are going up. It’s inevitable. After all, insurance companies can’t just ignore that data. Plus, they’re the ones who get to interpret what “safe driving” looks like, in numbers. Plenty of people who participate do save, but many more find out, pretty quickly, just how bad their driving is. Or, depending on your perspective, how stingy their insurance company’s trying to be that year. In either case, I wouldn’t recommend any of it. Distractions are abundant on the road, and the savings – usually in the order of $10-$20 a month, at best – aren’t worth the risk of raising your premium.

However, there is a similar program you can participate in that actually does make you a better driver and doesn’t potentially raise your premiums: the Defensive Driving Course.

Check with your insurer first, but this one-day, $25 seminar can knock as much as 10% off your premiums. In most cases, you can even take it online. Shop around for an insurance policy that fits your budget and needs, ask if they offer the discount, if there are any restrictions, and complete the class before paying for your policy – no insurers offer reimbursement or credit for this particular program.

You might even re-learn a thing or two you forgot from driving school.

Dashboard-mounted cameras, or “dashcams,” are not new technology. For decades now, consumers, businesses, and law enforcement have used these devices to monitor and record what really happens around their vehicles, both on and off the road. They’ve exploded in popularity after YouTube, social media, and high-profile court cases began to show how drivers could successfully use dashcam footage to contest traffic accidents, theft, fraud, and damage caused by unruly passengers. Recently, dashcams have even exposed widespread but well-hidden civil rights abuse by law enforcement – catching bad cops engaging in all manner blatant criminality.

There is rarely sufficient documentation because of the sudden and dramatic nature of vehicular incidents. As a result, they frequently devolve into “he said, she said” situations. Dashcams help to provide a clearer picture of the events, as they actually unfolded, going far in proving your true level of liability. Although the upfront cost is steep – as with all quality cameras – it only needs to be useful once to have paid for itself.

Insurers typically don’t offer any specific discounts for having a dashcam in one’s vehicle. It’s not like a driving tracker application, where insurers give discounts for good behavior based on data pulled from a phone’s accelerometer. But the absence of a direct reward doesn’t mean you should forgo the camera. Take a look in any Uber, Lyft, or taxi: there’s a dashcam, guaranteed. A different set of incentives is at play, as the camera’s presence reminds passengers and other drivers alike: “I have an incontestable record of your behavior, here.”

And in a court of law, the camera is considered a firsthand witness.

When accidents happen, the claims process can become atrociously messy if there’s any doubt about who’s at fault. It’s common for proceedings to devolve into one driver’s word against the other. Judges become frustrated, and more likely to conclude that both parties are at fault. But being found liable – even partially – could bar you from recouping damages from the other party’s insurance. Or worse: require you to pay out of your own insurance for repairs, which means your premiums are absolutely going up.

There’s also the ever-present threat of car insurance fraud. If someone successfully implicates you in a staged accident, the results can be truly disastrous. I’m talking tens of thousands of dollars in legal fees, drastically-increased insurance premiums, a ruined relationship with your insurer, and real damage to your reputation – which money cannot fix. But a video record of the events in question, in combination with a police report, is your best and only defense against insurance fraud.

Generally speaking, a solid dashcam costs between $100 and $300. Higher-end models will include HD video, failsafe backup batteries, built-in GPS, and accelerometer. Some will even automatically alert emergency services in case of an accident. Lower-end models still get the job done, and are 100% better than nothing. But in both cases: they’re widely available and easy to install. My only personal recommendation would be to spring for a camera with motion-detecting capabilities, as this has the added benefit of theft protection. Some models begin recording as soon as they’re disturbed, acting as a security camera. Your footage could serve as a firsthand witness, assisting law enforcement with tracking down local car thieves and even possibly reuniting you with stolen items.

Regardless: if there’s any dispute, any question, any uncertainty after you’ve filed a claim – the footage on your vehicle’s dashcam could be the deciding factor in how you come out of the ordeal. Don’t be caught without one.

The first step in knowing what type of insurance you need is to assess your business’s risk. What are the potential hazards that could affect your business? If you have a physical location, you will want property and liability coverage in fire, theft, or accidents.

If you work with clients or customers, you will also want general liability insurance to protect yourself from any lawsuits that may arise. You should also consider business interruption insurance if a natural disaster or accident disrupts your normal operations.

Which kind of insurance will protect the business?

Property insurance will protect the physical building and its contents in case of fire, theft, or natural disasters. Liability insurance protects the business from any legal claims that may arise from accidents or injuries on company property.

Business interruption insurance provides financial assistance if a natural disaster or accident disrupts your normal operations—workers’ compensation insurance for lost wages and medical expenses for employees injured on the job. Cyber liability coverage protects businesses against losses incurred from data breaches and other cyber attacks.

How do you make sure a company is insured?

You can ask the company for proof of insurance. Most businesses are required to have general liability and property insurance. You can also check the business’s website or look them up on the Secretary of State’s website.

When should you buy business insurance?

It is important to buy business insurance as soon as possible, especially if your business is high-risk. Coverage typically starts on the date that the policy is purchased, not when the incident occurs. Waiting too long could leave your business unprotected in case of an accident or disaster.

How much is business insurance monthly?

The cost of business insurance is different depending on the type of coverage and the amount of coverage. The monthly cost also depends on the company’s risk level.

What is small commercial insurance?

Small commercial insurance is a type of business insurance that covers businesses with fewer than 50 employees. It typically includes property and liability coverage and business interruption insurance.

What is the difference between general liability and product liability?

General liability protects the business from any legal claims that may arise from accidents or injuries on company property. Product liability protects the business from any legal claims that may arise from defective products sold to consumers.

Renters insurance vs. homeowners insurance

Renters insurance protects tenants’ belongings in case of fire, theft, or natural disasters. Homeowners insurance protects homeowners’ belongings in case of fire, theft, or natural disasters. It also provides liability coverage in case someone is injured on the property.

Homeowners insurance protects homeowners’ belongings in case of fire, theft, or natural disasters. It also provides liability coverage in case someone is injured on the property. Renters insurance protects tenants’ belongings in case of fire, theft, or natural disasters. Homeowners’ insurance and renters’ insurance are not interchangeable. You will need both types if you have a house rented out to another family at the same time as living there with your own family.

Why do I need general liability insurance?

General liability is a type of business insurance that protects the business from any legal claims arising from accidents or injuries on company property. This includes everything from slip and falls to car accidents with customers outside your store’s parking lot.

It also covers medical expenses for employees who are injured while working at your business location, as well as lawsuits for defective products sold by your company. General liability typically does not cover damage done intentionally by an employee.

However, it can include vandalism or theft committed during non-business hours (such as after closing time).

Conclusion

Business insurance is essential for any company. It can protect your business from accidents and disasters that may occur, as well as protect your employees. Make sure to buy coverage as soon as possible, and ask the company for proof of insurance before doing business with them.

The change in the industry boils down to two significant trends:

1.) A sharp uptick in weather-related natural disasters

2.)  A growing number of impossibly-large civil liability settlements.

In this article, I’ll discuss the impact of the latter.

Nuclear Verdicts

There’s a recent court case I’d like to point to, in particular: Dzion v. AJD Business Services –  a deadly truck accident lawsuit in which the jury handed down a judgment of $1 Billion to the plaintiffs.

The loss of life at the center of these court cases is tragic, no doubt. And it highlights a dire need for improved working conditions for commercial drivers. At the time of the accident, the driver working for AJD Business Services was distracted by a cell phone, far over the legal limit of drivable hours, not in possession of a commercial driver’s license, and unable to read English. He was driving 70 on cruise control, and the data recorder showed he did not attempt to brake until one second before crashing into a line of stopped cars.

Before I continue: I don’t want you to think that I am defending the corporation responsible in any way, shape, or form. This is shockingly negligent. And any business with such reckless practices does deserve to be punished for the resulting loss of life.

But these judgments have exploded in size and frequency since 2018, and the companies involved are not billion-dollar companies. In many cases, significant civil judgments exceed a company’s annual revenue ten times over. It’s simply too massive a sum to pay, even in installments. In the context of an average working career: you’d have to make $25 million every year to reach a billion in lifetime earnings. The settlement, which was awarded in Nassau County, FL, equals almost half the GDP of the county.

It’s not so much an issue of the punishment not fitting the crime. It’s more of a “cruel and unusual” problem – not for the negligent companies responsible, but the thousands of individuals living in the municipalities affected by these cases.

Because when these settlements occur – the company almost always goes bankrupt, and most of the sum ends up being paid out by public funds, private insurance, and public, state-sponsored insurers. It’s a massive drain on the already-tight operating budgets of municipal governments and a shock to the insurance industry – which simply wasn’t designed to pay out 10-figure claims on a regular basis. Insurers respond with proportional rate hikes, making it unaffordable for companies to purchase the insurance policies needed to cover liabilities of this size in the first place! And because they can’t afford the insurance, it ultimately increases the number of cases that end up being paid out of public funds.

There is some justice. A billion dollars means something. That you’re set for life, that you beat a deeply broken system. But if most of the money came directly out of public funds and into the pockets of attorneys… If people lost their jobs because the liable company went under: that’s a massive amount of collateral damage.

Bear in mind: in these cases, the prosecuting attorneys take home, on average, 30% of the judgments they request from juries in these cases.

This ongoing exploitation of the legal system for profit is a grave warning. People need to understand that the losses experienced in 2021 have pressured the insurance industry to change significantly or risk facing never-before-seen consequences. Unfortunately, the ultimate result of these “nuclear verdicts” are higher insurance premiums for everyone, increased financial strain on insurers leading to fewer claims paid across the board, and depletion of municipal resources and public funds.