Money is tight, there’s no getting around it. This means that you might find it difficult to justify seemingly unnecessary expenses. But it’s one thing to cut down on your luxuries, it’s another thing entirely to cut down on your insurance policies.
Many people cancel, renew, or take on new policies around this time of the year, as it’s approaching the next financial year. So while you’re considering your options, here are a few ways that insurance isn’t just a waste of money.
The Legal Obligation
In some cases, insurance isn’t an optional extra. You’re most likely to encounter this if you drive a car, because your car needs to be insured if you plan on driving it. This is a legal requirement in most places, but it’s worth researching the minimal coverage that you need as a driver.
This is because, in the event of an accident, your insurance company might need to pay out to repair your car and other property, especially if you are considered responsible for the accident. An uninsured driver is less likely to be able to repay this.
Industry-Specific Insurance
Legally required insurance also crops up in business. For example, in the healthcare industry, medical malpractice insurance is considered a necessary expense. While it isn’t always illegal to practice without it (although again, it’s worth checking this out for your local area), going without appropriate insurance is incredibly risky. This is because medical malpractice suits can cost thousands, if not millions if not insured, which is enough to end a business.
There are other industry-specific insurance policies, some of which are legal requirements for a company to trade, and others that are very highly recommended. A lot of customers are less likely to work with a company that can’t prove that it’s insured, especially if their property or belongings are at risk.
You also need to consider insurance for your employees, both to protect them and to protect your company. If someone gets hurt on-site, for example, your employee insurance could help them and prevent your business from having to cover higher costs.
Basic Insurance Plans
What if you’re not sure about what insurance to get and what insurance you can go without? If you run a business, a business insurance policy can protect your assets if something goes wrong.
In your personal life, as well as car insurance, which is often a legal requirement anyway, there are a few other types of insurance to consider. Life insurance can be especially helpful if one or both of you work, as it can cushion the financial blow of a loss.
Home insurance keeps your property and, ideally, your belongings safe. Make sure to look into the different types of home insurance policies, as they may or may not be appropriate for your needs. For example, if your area is often hit by storms or other natural disasters, they should be covered under your policy.