Why Is It Important To Have Insurance

Life is uncertain. No one is aware what the future holds and therefore, in order to mitigate the risks one buys insurance. Insurance is a promise made that incase of a catastrophic event, the insurance carrier will assist you to get back on your feet. There are different kinds of insurance. These are broken down into two broad categories – personal and business insurance.

Personal insurance is again subdivided into auto and vehicle insurance, home and renter insurance, personal umbrella, life, income and future insurance, recreational vehicles as well as special insurance.

The business insurance has subcategories such as: Property, employee benefits, liability, business continuation planning, commercial auto, workers compensation, bonds, industry specialties, commercial packages, and business owner policies.

Important To Have Insurance

These categories and subcategories are as per Murphy Insurance Agency.

Since insurance is intangible, the value of it is questioned. However, here are some reasons why insurance is important, and there are so many insurance offices in MA as well as in all states and countries, too:

  1. Insurance coverage does not cover acts of war. Therefore, in cases of terrorists attacks the person is uncertain as to whether he or she will be covered or not. This is akin to what happened after 9/11 but due to government intervention, this was covered just so that commerce could be kept moving. This is the reason why businesses did not avoid operations like refineries which are prone to terrorist attacks.
  2. Lenders require the person to take an insurance cover so that they are safeguarded. Mortgage lenders need proof of insurance before purchasing or building a new site. Without insurance being there, the borrower will never be able to put up the funds needed as the lenders would not be willing to risk their money.
  3. In certain states, certain types of insurance are compulsory such as auto insurance or even worker’s compensation. This helps to mitigate risks to a large extent.
  4. Insurance provides the person with peace of mind and therefore entrepreneurs are able to explore opportunities and are able to take bolder risks thanks to the lenders being safeguarded by insurance covers.
  5. Insurance provides a means of sustenance to families that have lost their only earning member. It also provides peace of mind to the sole earning member who is assured, incase of any unfortunate incident, his or her family will be well taken care of.
  6. Insurance allows small businesses to take risks. Incase they do not have insurance and the risk does not work out in their favor, it could result in them getting crippled as a result of the hit and them being forced to leave the business or sell to large businesses and wind up. This also means that the big business slowly gets a monopoly. However, due to insurance, the monopolies are prevented as the little businesses are able to handle risks better.
  7. Insurance is needed by communities devastated due to some reason or the other to recover back to their earlier days.

Therefore, as seen, insurance is needed and required.  So, you need to get in touch with insurance offices in MA as soon as you can!

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