Types of Insurance Coverage: A Comprehensive Overview

Mistakes and accidents happen, both to individuals and businesses.  It is essential to have the necessary insurance coverage to pay for the costs of an unexpected incident or accident.  Insurance companies write policies that can protect you and/or your business from many types of harm and damage. Here is an overview of different kinds of insurance coverage.

Property and Casualty Insurance

Individuals and businesses must protect their property from disasters and fires. Then, they need to protect themselves from liability.  Property insurance is a broad insurance coverage that protects a structure and most things inside it.  Casualty insurance protects a person or business if they cause harm to others.  For example, a customer or visitor may slip and fall on the property and file a claim against the owner.  Often, these coverages are bundled together in one policy.

Life Insurance

Individuals need life insurance coverage to provide for their loved ones after they are no longer here.  Purchasing a life insurance policy is an absolute must for families.  There are different types of life insurance policies.  One can buy a term life insurance policy that provides coverage for a specified period of time;  these policies lapse at the policy’s conclusion.  Alternatively, they can elect for permanent life insurance that builds equity and provides a death benefit.

Health Insurance

Individuals need coverage because the cost of medical bills can be prohibitive.  Many employers provide health insurance coverage as part of the benefits package.  Self-employed individuals or those not working may need to purchase their own coverage.  They can often do so through health insurance exchanges in their state.

Specialized Insurance Coverage

Many insurance companies will contain exclusions that state that the policy does not cover certain events.  At other times, the language of the policy may not extend to covering certain events. For individuals, many homeowners’ policies do not cover floods.  Things such as cyber-attacks and data breaches would not be covered for businesses.  Thus, individuals and businesses may need to purchase dedicated coverage for certain events that could present risks.

Professional Liability Insurance

You can be sued for malpractice if you practice in a certain specialized profession.  Engineers, doctors, and lawyers are professionals who need additional insurance to cover them for their actions in their daily jobs.  Malpractice lawsuits can be costly to defend and potentially settle any causes of action.

Director and Officer Insurance

Those who run a company need to protect themselves from liability.  They can held personally liable if they are found to have breached their fiduciary duties to the company or its Shareholders.  Directors and Officers often face lawsuits from Shareholders for breaching their duty of care or loyalty.  If they lose the lawsuit, the money to pay the judgment could come from their own pocket if they do not have the necessary insurance coverage.

Those running a business need to review their policies and coverage relatively frequently to ensure that they are properly protected.  As a business changes, so do its insurance needs.  Individuals also often need to review their policies as their families and personal needs change.  Insurance is an investment in your protection, business, and family.

However, there may be times when you have disagreements with the insurance company, such as whether a certain occurrence is covered or relating to the value of the claim.  In those circumstances, you may need to take legal action against the insurance company.

Contact Our New Jersey Insurance Lawyers at Herold Law, P.A. for Help Understanding Your Coverage and Rights.

If you are involved in any disputes or need assistance with a complex insurance claim, contact our New Jersey insurance lawyers at Herold Law P.A. To schedule a consultation, call us at 908-679-5011, or contact us online.  Located in Warren, New Jersey, we serve clients in Somerville, Morristown, and across New Jersey.