Does business liability insurance cover employee injuries?

No, business liability insurance does not cover employee injuries. For this, you would need workers' compensation insurance. Workers' comp covers medical expenses and lost wages for employees injured on the job.

How can an insurer improve its solvency ratio?

Insurers can improve solvency ratios by increasing capital reserves, improving underwriting profitability, reducing excessive risk exposure, and optimizing investment portfolios for financial stability.

What is key person insurance and who needs it?

Key person insurance provides financial support to businesses if a crucial employee or executive dies or becomes unable to work.

How do insurance companies calculate premiums for health insurance?

Health insurance premiums are calculated based on factors such as age, health status, smoking habits, and location. Insurers also consider the level of coverage chosen, deductible, copayments, and the plan type (e.g., HMO or PPO). Larger families or individuals with pre-existing conditions may face higher premiums due to the perceived risk.

What is a critical illness rider?

A critical illness rider provides a lump sum payout if the insured is diagnosed with a severe illness like cancer, heart attack, or stroke, as defined by the policy.

Are defense costs included in professional liability insurance?

Yes, most PLI policies include defense costs, meaning the insurer pays legal fees, court costs, and settlements up to the policy limit. Some policies cover defense costs within the overall limit, while others provide separate coverage for legal expenses.

Is whole life insurance a good investment?

Whole life insurance offers financial security and tax advantages, but it may not provide the same returns as traditional investments. It is best suited for long-term financial planning, estate planning, or wealth transfer strategies.

Can I reinstate my policy after the grace period expires?

Some insurers allow reinstatement after a policy lapse, but it may require a new application, underwriting approval, and possibly higher premiums.