Podcast
Questions and Answers
What does employers liability insurance protect against?
What does employers liability insurance protect against?
- Loss of income due to major events such as a factory fire
- Harm or loss suffered through the use of a firm's product
- Financial loss due to fire
- Claims from accidents, injuries, illness suffered by an employee due to their work (correct)
Which type of insurance would cover financial loss from a major event like a fire in a factory?
Which type of insurance would cover financial loss from a major event like a fire in a factory?
- Employers liability insurance
- Consequential loss insurance (correct)
- Product liability insurance
- General health insurance
Which of the following is true about product liability insurance?
Which of the following is true about product liability insurance?
- It protects against claims related to employee injuries
- It pays out a lump sum when the insured reaches a certain age
- It protects against harm or loss from using a firm's product (correct)
- It covers financial loss from events like fires
How does mortgage protection insurance function?
How does mortgage protection insurance function?
What is the role of an insurance broker?
What is the role of an insurance broker?
What does endowment life assurance offer the policyholder?
What does endowment life assurance offer the policyholder?
What does health insurance for employees provide?
What does health insurance for employees provide?
What is the fundamental purpose of property insurance for businesses?
What is the fundamental purpose of property insurance for businesses?
Which insurance protects a business against claims if a public member is injured in an accident considered the business's fault?
Which insurance protects a business against claims if a public member is injured in an accident considered the business's fault?
What does a fidelity guarantee insurance cover?
What does a fidelity guarantee insurance cover?
Why is motor insurance crucial for a business?
Why is motor insurance crucial for a business?
What is the main benefit of life assurance for a household?
What is the main benefit of life assurance for a household?
What type of insurance protects a business against the loss of a valuable staff member?
What type of insurance protects a business against the loss of a valuable staff member?
Why is financial security important for a household in the context of insurance?
Why is financial security important for a household in the context of insurance?
What determines the fee for an insurance policy?
What determines the fee for an insurance policy?
What is a cover note in the context of insurance?
What is a cover note in the context of insurance?
What is the role of an assessor in the insurance process?
What is the role of an assessor in the insurance process?
What does the principle of indemnity ensure?
What does the principle of indemnity ensure?
What does the principle of contribution state?
What does the principle of contribution state?
Under the principle of subrogation, what is the insurance company's right after compensating for a loss?
Under the principle of subrogation, what is the insurance company's right after compensating for a loss?
What must a person seeking insurance demonstrate according to the principle of insurable interest?
What must a person seeking insurance demonstrate according to the principle of insurable interest?
What method might an insurance company use to settle a claim?
What method might an insurance company use to settle a claim?
Study Notes
Business Insurance
- Protects against claims for harm or loss suffered through the use of a firm's product
- Employers' liability: protects against claims from accidents, injuries, or illnesses suffered by an employee due to their work
- Consequential loss: protects against a major event that has a financial loss of income for the business
Personal Insurance
- House insurance: Buildings & Contents
- Motor insurance
- Mortgage Protection: pays out if the person dies without paying the mortgage
- General health insurance (e.g., Aviva, VHI)
- Life assurance: pays out a lump sum when the insured dies
- Endowment life assurance: pays out a lump sum when you reach a certain age if you are not dead yet
Taking out Insurance
- Step 1: Contact an insurance company or broker
- Step 2: Fill out a proposal form
- Step 3: Risk is assessed and premium is calculated
- Step 4: Cover note and Policy Issued
- Step 5: Making a claim
Importance of Insurance
- Business survival: protects against financial loss
- Exporting goods: easier with insurance against damage
- Legal requirement
Importance of Insurance for a Household
- Peace of mind in case of accidents
- Financial security as risks can be covered
- Savings can be enhanced by life assurance
Types of Insurance
- Property Insurance: premises and contents against fire, flood, burst pipes, and theft
- Cash & Valuables: insured while on premises and in transit
- Motor insurance: legal requirement
- Health insurance: provides sick pay for workers unable to work due to illness
- Key person insurance: protects a business against a loss of a valuable staff member
- PRSI: compulsory insurance paid to the state by employees and employers
- Fidelity guarantee: protection against fraud or dishonesty by an employee
- Public liability insurance: protects against claims if a public member is injured in an accident
Principles of Insurance
- Insurable interest: person seeking insurance must benefit from the existence of the item and suffer from its loss
- Utmost good faith: must fill in proposal form truthfully
- Indemnity: a person cannot make a profit from insurance
- Contribution: if two or more insurers are involved, they will divide the total cost of the claim between them
- Subrogation: the insurer who pays out full compensation for an item insured is entitled to take possession of the item involved
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Description
Understanding the basics of insurance, including the importance of insurance for businesses and households.
