Insurance 101

Content

• Broker vs Agent

• What is Insurance?

• How To Obtain an Insurance Policy?

• Why Buy an Insurance?

• Who Needs Insurance?

• When Should You Buy an Insurance?

• Insurance Policy Component You Should Know

BROKER VS AGENT

An insurance broker is a professional who represents consumers in their search for the best insurance policy for their needs. They work closely with their clients to research coverage, terms, conditions, and price and then recommend the insurance policy that best fits the bill. Unlike captive and independent agents, who represent one or more insurance companies, a broker’s primary duty is to the client.

On the other hand, an insurance agent is a professional who sells an insurance company’s products to consumers for a commission. An agent helps consumers select the right insurance to buy, but represents the insurance company in the transaction and is able to execute an insurance transaction from start to finish.

Blue Rock Insurance Services, Inc. runs primarily as a insurance broker. Therefore, we work for and in the interest of our clients, as it has always been and will continue to do so diligently.

What is Insurance?

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium.

Insurance is a form of:

1. Financial resources

2. Risk sharing and management

3. Wealth management

4. Loss control

5. Investment

6. Social and emotional alleviation

7. Compliance to regulations

Why Buy an Insurance?

Insurance act as a financial protection. It is a way of managing risks. You could, in fact, pay out less in the event of mishaps that requires spending. For a fee, you could have numerous financial benefits and other advantages.

Insurance helps you: own a home, because mortgage lenders need to know your home is protected; Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage; Maintain your current standard of living if you become disabled or have a critical illness; Cover health care costs like prescription drugs, dental care, vision care and other health-related items; Provide for your family in the event of a death; Run a small business by managing the risks of ownership; Cover liability cost in the event of a lawsuit; Take vacations without worrying about flight cancellations or other potential issues.

Particularly for business owners, proof of insurance coverage (a.k.a COI, Certificate of Insurance) is often required by customers before being awarded a project or to perform business.

How To Obtain an Insurance Policy?

Insurance, like many other product, can be purchased from an insurance company as commodity through an agent. However, obtaining an insurance policy can be laborious and tedious. There are many forms to fill, documents to collect, coverage to explore, and cost to consider. The complexity of the application and procedure made susceptible for errors, which could cause delay and unreasonable surcharge on your insurance policy.

This is where we come in, to do it for you in the right way within your needs. All you have to do is provide required information and documents. We will make your purchase of insurance as simple as it can be at competitive cost.

Who Needs Insurance?

Insurance is so vast, there are numerous variety of insurance policies that offers different coverage, to the extend that it is customized to fit almost every circumstances and people. Not limited to:

1. Business owners

2. Parent

3. Children

4. Home/estate owners

5. Renters

6. Vehicles and valued item owners

7. Employees

8. Traveling individual/group

When Should You Buy an Insurance?

For business owners, insurance like workers compensation and general liability are legally required to run a business. Therefore, business owners should purchase insurance before initiating services and hiring to avoid any possible liability.

For individuals, it depends on the needs and the type of insurance you’re looking for. But it is never too early or late to start investing in insurance. You should buy an insurance when you own a home, a car, a family, or when you plan to travel.

Generally, quoted premium goes up as you age. People of younger age may not see the need to purchase one. However, for the long-term, it might serve as a better choice to purchase now than to wait, both cost effective and safer. It’s hard to determine what might happen. Our licensed broker are happy to provide you guidance in that matter.

Insurance Policy Component You Should Know

Premium

A policy's premium is its price. The premium is determined by the insurer based on your or your business's risk profile, which may include creditworthiness. For example, if you own several expensive automobiles and have a history of reckless driving, you will likely pay more for an auto policy than someone with a single mid-range sedan and a perfect driving record. However, different insurers may charge different premiums for similar policies. So that’s where we would help.

Policy Limit

The policy limit is the maximum amount an insurer will pay under a policy for a covered loss. Maximums may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also known as the lifetime maximum. Typically, higher limits carry higher premiums.

Deductible

The deductible is a specific amount the policy-holder must pay out-of-pocket before the insurer pays a claim. Deductibles serve as deterrents to large volumes of small and insignificant claims. Deductibles can apply per-policy or per-claim depending on the insurer and the type of policy. Policies with very high deductibles are typically less expensive because the high out-of-pocket expense generally results in fewer small claims.