Kathmandu. If you are running a business or preparing – you should also have insurance. Along with this, you also need insurance literacy.
In general, insurance for this business will keep your company free from having to pay out of pocket to cover potential property damage and liability.
Often, business owners only get insurance because they need it in compelling circumstances. This mindset appears to be no different from the outlook around other insurance types such as health, home, and motor insurance.
You may or may not be surprised to learn that many of those who insure for a business know very little about it. If you’re a small business owner yourself, you’ve probably taken out some insurance because insurance is cheaper. Or maybe you contacted an insurance broker because someone suggested you, and you followed their recommendation.
But do you really know what you’re paying insurance for in terms of risk bearing? Is your insurance policy working as much as possible for you? Or do you not care much about insurance as just another expense of doing business?
Well, what we want to tell you is that you should not compromise when it comes to the insurance risk appetite of your business or firm. It is important to understand the options available to you and make an educated decision about your insurance plan.
What is insurance literacy?
Simply put, “insurance literacy” means fully understanding your plan and using your risk appetite appropriately. This term is used in all sectors including life insurance, health insurance, property insurance.
Insurance literacy refers to the state that a person has the knowledge, ability, and confidence to find and evaluate information about their insurance plans. He uses this knowledge to choose the best plan for his situation. Once insured, they are conscious of using their insurance to cover reasonable costs and claims.
The insurance itself seems to be fairly basic. This is something that you will need not only to run a business, own a home, and drive a motor car, but also to bear the risk of personal life and avoid the need for money. Then you may have thought that all insurance plans are almost the same.
There are actually many aspects to consider when choosing the right insurance plan. You won’t pay for something without knowing what you’re getting. It would be like ordering food indiscriminately at a hotel: “Please bring me anything less than 300 bucks.” “
Why, then, are you so inclined to leave something so important to chance?
As a consumer of insurance, you are your own best advocate. We can tell you what to look for and how the plans compare to each other – and your agent will do their best to help as well – but nothing can beat your own time and attention in the process.
Unfortunately, many consumers don’t invest a lot of time in this process, and insurance companies often rely on this complacency to sell insurance policies.
How to start your insurance literacy journey?
Hopefully, you’ve learned how important insurance literacy can be and why you need to understand your insurance options and risk appetite (it’s not enough just to have it). But we know that action is easier said than done. The process can be overwhelming, especially when there are so many options available.
Start by asking yourself and your agent these questions about your insurance policy
When did I review my insurance policy?
Do I know what risks my current insurance policy covers?
Do I know what risks my current insurance policy doesn’t cover?
Can I include more risk bearing?
Can I vary my insurance premium?
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