Insurance is essential and necessary in some scenarios in anyone’s life. It is defined as a legal contract typically shown as a policy. That protects an individual, organization, or company against a loss. There are numerous things that an insurance policy can cover. Things such as theft, loss of profits, structural damage, elderly, and even death. It doesn’t matter what or who insurance is covering it is requirement for anyone.
No matter the size of a company theft of items or money may occur. Things such as security cameras or even security may be required to prevent theft from occurring. Although, preventative measures have been put in place such as security it may not be enough to prevent theft. This is one of the reasons a company may have insurance. The best examples of this can be seen in shoplifting or robbery. To cover unforeseen cost from theft and to prevent having to raise prices to the consumer the company may use their insurance to cover their lost.
Another reason a company may have mandatory insurance is health-care. To prevent having workers being injured and paying for the injury out of pocket the employer could have workers compensation for employees. An example is having a pivotal employee injured. An employee that has an educational background in a specific field and no replacement could cost the employer a great deal of money due to duration that it would take the individual to get well. Depending on the size of the company or the product that is being manufactured it may be mandatory for the employer to have health care from governing authority.
Another instance that an employer would be required to provide employee health insurance is working around toxins and metals, that enhance a person’s chance of developing health problems. Because of the high risk of medical complications governing authority may require employees to have health insurance. An example of this can be seen at a nuclear power plant or a company that handles radioactive material. Because of the possible exposure to the chemicals employees have a greater chance of developing health complications. Side effects from exposure may appear immediately or may occur long term. So for this reason and others such as going to a doctor regularly for testing, which due to cost may require health insurance employers are mandated to have health insurance.
Another coverage that may be required depending on rules and guidelines of the location is life insurance. Many preventative measures have been put in place. Still because of machine malfunction, human error, and the most common negligence on the job work accidents occur. Depending on the circumstances these accidents could be fatal. For this reason and depending on the type of manufacturing employment and the risk associated with life insurance may be required.
Structural damage can occur for many reasons to a building. If this does occur owners of the building may choose to have it covered by insurance. In some cases depending on the location and local rules insurance may be required for preventive measures. Building that were built long ago deteriorate. Previous materials used to build it may not fit current laws and guidelines to be deemed operational. Paint that was used on older buildings is a great example of this. Previously lead was used as an ingredient in paint but because of its toxicity it was ban by regulars. If an individual is a building owner’s and find that the walls do not fit into regulations they can be shut down because of it. If the owners have insurance they may not have to pay anything or possibly, will only have to pay part of the cost for the paint repair.
Another reason for structural damage is mother nature. Damage from wind, rain, lightning, sun, flooding, tornado, or even hurricanes can all contribute to structural damage. Depending on the location some areas are more likely than others to experience damaging whether more than others. For this reason building owners may be required to own insurance before occupying a building. In some states it is a requirement for renters insurance.
Elderly people account for the most insured age group than any other. This includes Medicare and life insurance. Life insurance is one of the most sought after things by elderly people because of the higher likelihood of them dying more than any other age group insurance is essential. They are more likely than any other age group to suffer medical problems and receive treatment through medicaid. For this reason and more they cost insurancers the most than any other age group.
Insurance is important to me because it will prevent accidents from occurring and me from being at a complete loss because of it. Personally, insurance is a must have and it is essential for any adult to have. It can be received through employment or obtained because of requirements associated with the ownership of property. Another reason unspoken and maybe a requirement is automotive insurance. Depending on the vehicle type or mode of operation insurance may be required. No matter what the reason insurance is required and inevitable.
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