Interesting articles about insurance

Not-so-common Insurance Categories

Most of us are familiar with the basic Insurance categories such as Life Insurance, Vehicle Insurance, Home Insurance and Health Insurance. However the following Insurance categories are comparatively unknown:

Crime Insurance

It is cover against criminal acts such as robbery, burglary and other forms of theft and also called “fidelity insurance”. Crime Insurance will allow a business to claim for employee theft and crimes which could cause financial wreck.

Commercial crime insurance covers money, securities and other property against:

1. Employee Theft

2. Forgery or Alteration

3. Inside the Premises – theft of money and securities, robbery or Safe burglary of other property

4. Computer Fraud

5. Funds Transfer Fraud

6. Money Orders and Counterfeit money

Terrorism Insurance

This covers property owners against potential losses and accountability that might occur due to terrorist activities.

It is a difficult product for insurance companies, as prediction of terrorist attacks are very difficult and the potential liability enormous. Therefore setting of premiums is difficult. The September 11, 2001 attacks resulted in an estimated $31.7 billion loss. Most insurance companies now exclude terrorism from property insurance.

Satellite Insurance

This is a specialized section of aviation insurance provided directly by about 20 insurers worldwide, since 2000.

It covers:

• Re-launching the satellite if a launch fails

• Replacing the satellite if it is destroyed, positioned in an improper orbit, or fails in orbit

• Liability for damage caused to third parties, by the satellite or the launch vehicle.

Interest Rate Insurance

This protects against increasing interest rates on a variable rate mortgage or loan as an alternative to re-mortgage onto a fixed rate.

Since there are no valuation fees, bank and legal charges, interest rate insurance can be cheaper than a re-mortgage. It protects from rising interest rates but if interest rates fall, the policyholder will get the benefit.

Kidnap and Ransom Insurance

It is designed to protect individuals and corporations in high-risk areas which include Mexico, Venezuela, Haiti, and Nigeria, certain other countries in Latin America, some parts of the Russian Federation, Eastern Europe and Central Asia, particularly Afghanistan and Iraq.

Often those who have this insurance are not aware, as it could be provided by an employer to protect the company’s assets.





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