The Types of Insurance You May Need or Are Required to Get by Law

 

The world of insurance can be overwhelming and confusing to most Americans.

It is difficult to know what types of insurance you should prioritize. When you're working within a budget, you may be tempted to cut certain types of insurance out to save a bit of money. In many cases, this could be a huge mistake.

Some types of insurance are required by law and, if you're caught without them, you could be in serious trouble. Depending on where you live, the required insurance may include auto insurance, health insurance, homeowners or renters insurance, and even disability insurance.

Auto Insurance

Auto insurance is mandatory in almost every state. If you are caught driving without it, you may face serious fines and penalties. Most states require a minimum amount of liability coverage as well as uninsured motorist coverage (in case the other driver doesn't have insurance).

Home/Renters Insurance

There aren't any laws stating that you need to get homeowners or renters insurance, but it's certainly wise to do so. If you've got a mortgage, your lender may require you to get home insurance to protect their stake in the property.

These types of insurance help you financially if your home or belongings are damaged or stolen. Without it, you'd have to pay out of pocket to replace your belongings, which can be financially devastating in many cases.

Health/Life Insurance

Health and life insurance are both non-mandatory, yet essential forms of protection. If you have dependents, life insurance is necessary to ensure that they're looked after financially when you pass away. You'll choose between term and whole life insurance, which will depend on your budget and needs.

Health insurance is important because most medical attention in this country is enough to cripple someone financially. If you pay into a health insurance policy or get it through your employer, you can significantly reduce the burden of medical bills.

Business Insurance

If you're a business owner, there are a few different types of insurance that are mandatory. General liability insurance protects your business against claims of bodily harm or property damage. For example, if someone slips at your restaurant, general liability insurance covers their medical bills.

Workers' comp insurance is similar but covers an injured worker's medical expenses and missed time. If you're found without one or both of these, you could be hit with major expenses or even serious fines.

Get the Right Types of Insurance

Not all these types of insurance are legally required, but they're all highly recommended. Not only do they protect you, but they put your mind at ease. Knowing that you're covered in the event of an auto accident, natural disaster, or medical emergency allows you to focus on other things.

If you need auto, home, business, or life insurance in Greensboro, NC, look no further than the Tom Needham Insurance Agency. We'll help you find the best possible rates, so you have the protection you need without breaking the bank. Contact us today to find out what we offer.

Why Every Business Should Get General Liability Insurance

 

Insurance. You do not want to think about the bad things that can happen in your business, but you need to have a plan in case something does happen. 

Unfortunately, not all business owners do. In fact, 44% of small business owners have never had any type of business insurance. 

If you own a small business, one type of coverage you may want to have for it is general liability insurance. 

What is this? How can it help your business? These are a few ways it can benefit you. 

Financial Flexibility 

One of the biggest reasons why you need to have liability insurance is to give your business the financial flexibility that it may need. This is especially the case if you have a new business. 

The first few years are vital to get your business off the ground. Over 65% of businesses fail after 10 years. 

With that rate of success, you need to give yourself every layer of protection that you can. One reason why businesses fail is that they do not have the financial capital to survive an unforeseen event. 

In this situation, it could be someone trying to sue you. Let your insurance company take care of these costs if someone does have a successful lawsuit so you can use that money where you really need it for your business. 

Flexible Policies 

Another reason why you should get general liability insurance is that there are flexible policies for this type of insurance. 

An example could be if you need insurance for a potential scenario where your business gets hacked and sensitive data gets released. Certain businesses may be more vulnerable to this than others, and you may need a policy that could better protect against this. 

What about if you are a business that is more likely to have an accident on-site? Certain policies can help you be prepared to face this situation more than others. 

Long-Term Success

Going off of the point above, having liability insurance can help you stay on the path of achieving your long-term goals. If you do not have to worry about dedicating extra assets to a lawsuit, you can continue to use them for what you originally wanted to. 

An example of this is to expand your business by paying for a new facility, new equipment, and a lot more employees than you may have had before. Being able to avoid this pause in your business plan can allow you to have success in your business a lot faster. 

Get General Liability Insurance 

These are three of the biggest reasons why you should get general liability insurance. It allows you to have flexible policies for your needs, flexible finances to dedicate to other parts of your business, and potential long-term success because you were able to keep these finances in place. 

Do you want to find the right business insurance for you? Get a quote from us today.

What Is an Insurance Clue Report?

Buying a home involves lots of steps, starting with looking for and finding the place you want and going on through getting financing and insurance and finally moving in. This is a process where you don't want to have to deal with surprises, but there's always the question of a home's true history. Knowing what's happened to your proposed future home in the past can be a big help when deciding whether or not this is an investment you want to make. It's also useful to the insurer who'll be writing a policy for the home when it comes to their underwriting process.

Insurance CLUE Report

While it's definitely to your advantage to have a property inspection conducted before making the final decision to buy a particular property, you'll also want to take a look at the most recent CLUE (Comprehensive Loss Underwriting Exchange) Report. You can bet your insurer will be looking at this report when underwriting your policy and determining the amount of premium you'll be charged. It just makes sense to know about the home you're considering before you give the final approval.

What is an Insurance CLUE Report?

An Insurance CLUE Report, also known as a loss history report, is a free tool you can use to find out if there have been any insurance losses filed on a particular property. Most home insurance companies are contributors to a claims history database known as CLUE, the Comprehensive Loss Underwriting Exchange, monitored by LexisNexis, a research company. Insurers also often use these reports when underwriting a new homeowner's policy to help in setting premium rates. Accessing CLUE Report information will enable you to learn what insurance claims were filed for a particular home during the past five years. This can tell you if losses were suffered from a fire, a storm, vandalism, or any of the other perils for which homeowner's insurance provides coverage.

Who Can Get a CLUE Report

Homeowners are eligible to receive one CLUE Report per year. If you're buying a home and want to see the report, you'll have to request that the homeowner get one and show it to you. Reports contain:

• Name of insurer
• Date and type of any losses within five years
• Status of claim and, if approved, amount of payout
• Policy and claim numbers

A blank report means no losses were claimed or the insurer isn't a CLUE participant.