How does term life insurance work?

A policyholder pays regular premiums to keep the policy active for a set term. If the insured person dies within the term, the insurer pays the agreed-upon death benefit to the beneficiaries. If the term ends and the policyholder is still alive, coverage expires unless renewed.

How does insurance help businesses?

Business insurance protects companies from financial losses due to lawsuits, property damage, employee injuries, cyberattacks, and other risks that could disrupt operations.

How do policy renewals work?

Some policies renew automatically, while others require active renewal; terms may change based on risk factors and premium adjustments.

Do I have to pay taxes on an insurance payout?

Generally, insurance payouts are not taxable if they compensate for a loss, such as a life insurance death benefit or a home insurance claim. However, some payouts, such as those related to investment-linked policies, may be subject to taxes.

Is product liability insurance required by law?

Product liability insurance is not required by law for most businesses. However, it can be required by retailers, distributors, or other entities you may do business with, especially in industries where the risk of product-related injury or damage is higher.

Does comprehensive insurance cover rental cars?

Typically, yes, if you have comprehensive coverage on your personal policy, it may extend to rental cars. However, coverage details vary, and you should confirm with your insurer whether rental car protection is included.

How do policies define covered perils?

Insurance policies define covered perils in the policy terms, listing specific risks covered under named peril policies or detailing exclusions under open peril policies. Understanding these terms helps policyholders know what events qualify for claims.

How long does it take to establish a captive insurance company?

The formation process typically takes 3 to 12 months, depending on regulatory approval, domicile selection, capital funding, and risk management planning.