Insurance today.

What is insurance?

This is an agreement signed between an individual and an insurance company where his property or body is covered in case of any loss, damages or injury accrued to it. The individual taking the cover pays for a certain premium or policy which is calculated by the company. This cover will cater for any reimbursement cost to the client or any third party involved or their property. An insurance company usually renders many clients’ risks in a pool to help make compensation more affordable.  

Components that make up an insurance policy.

Insurance today.


A Premium is the monthly cost paid to a company offering risk coverage services by the client, depending on the type of policy taken it can be paid quarterly or semi-annually. It is usually calculated by the company based on you or your business risk portfolio. The premium is what the insurer uses to compensate the client as per the policy and so when the client is unable to pay the premium it will result in cancellation of the policy.


            This is the yearly amount you pay for a policy before you can start enjoying the benefits of the insurance cover. This must be paid up front by the client before you make your claim against the coverage.

Policy limit

A policy limit is the maximum payout by a cover company regarding an any coverage claim. They usually differ in what is being covered such as a certain period or a particular injury.

Types of Insurance

There is a cover for basically any aspect of life ranging from health, business and life insurance which are readily available for those who can afford them. Car owners are required by law to take a car or an auto insurance, and in most countries the least you can take is a third party insurance which does not insure you but the car you had an accident with plus the passengers inside it. A person who owns a home will need a home owner insurance to protect his property which is the buildingwhereas a tenant in a rented space will require a renters insurance to cover his personal possessions in the house.

Every policy is specific to the needs of that particular insurance policy like for example a transport business will insure its fleet of cars and drivers against road accidents and the loss or damage to the goods being transported while a hotel business will take an insurance policy that protects its employees and premises from fire accidents arising in the kitchen.

Insurance policies for specific needs

Certain situations such as a medical facility will need to have a malpractice cover for its doctors in case of an incident. There are those rich affluent families that take kidnap and ransom covers for the family members due to the risk of public life as they are constantly a target to kidnappers. There is also a maritime cover policy for large ships that transport a lot of valuable products at sea in containers from one continent to another. These ships face a lot of dangers at sea such unpredictable waves or tides and pirates trying to hijack them so they need to be insured.


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