Insurance

If you are in the market for insurance, you know that it is a jungle out there. You have a huge list of options for auto, home owner, renter, personal property, health, life, and, if you are a famous entertainer, body part insurance.

If you are an entrepreneur, you have a whole different list of needs. You need to understand a whole different side of the insurance world. You need to protect your business, employees, and yourself from accidents and lawsuits.

Indemnity

Indemnity insurance protects you from any major “oops” that can happen when you run a company. Negligence, accidental contract breaches such as confidentiality, copyright, defamation, or libel, loss of data, and loss of goods are covered by this type of policy.

Liability

If your employee goes onto a customer’s property and breaks it, you have to pay for it. That is where liability comes into play. Injuries to third parties and damage to third party property are both covered by a liability policy. Liability also covers you if your product or service injures someone.

Property Insurance

Your company most likely has a physical office, factory, or warehouse. Property insurance covers that location against damage caused by a wide variety of possibilities including weather, fire, earthquakes, and other unexpected events. These policies generally cover the contents of the location, such as computer equipment and manufacturing equipment.

Business Interruption Insurance

If you are struck by a tornado, your office and equipment are covered by property insurance. However, the revenues you lose by now being able to operate are not covered. Insurance policies are available that cover you in case your business has to temporarily cease operations. Your livelihood and your employees’ livelihoods depend on your business operating. Make sure you are covered by a good policy just in case.

Where to Get It?

Shop around for your insurance when you are finding a new policy. Price differences and service levels can vary dramatically between companies. Companies have a wide variety of policy options to protect your business from disaster.

Last night, the United States government made possibly the biggest step forward for the American people in my lifetime.  219 United States House representatives voted to bring long overdue reforms to the US health care system.  We are still behind what is being done in pretty much every other country on the planet, but at least everyone will have insurance.

I know that a huge part (about half) of the country disagrees with meon this.  While I think it is great, some people think that the system works (though I argue just for rich insurance executives) or needs a different type of change, it has been passed and will impact you.  Like it or not, 30 million people, about 10% of the population, that were not insured will be.  Within a couple of years, the term “pre-existing condition” will be extinct.  Everyone will be covered, not matter what, by a health plan.

The bill, once signed, will be rolled out over about ten years.  The first changes will go into effect within the next six month.  After that, each year something new will kick in.  If you want to know how this impacts you, the best resource I have found is from the New York Times.  They have an interactive diagram that tells you exactly what to expect.

The Wall Street Journal gives a good breakdown of what is going to happen each year.  For example, the next two years have this in store:

2010

Coverage

• Subsidies begin for small businesses to provide coverage to employees.
• Insurance companies barred from denying coverage to children with pre-existing illness.
• Children permitted to stay on their parents' insurance policies until their 26th birthday.

2011

Coverage

• Set up long-term care program under which people pay premiums into system for at least five years and become eligible for support payments if they need assistance in daily living.

Taxes and fees

• Drug makers face annual fee of $2.5 billion (rises in subsequent years).

I also enjoyed Five Cent Nickel's post on the new legislation.  And, in case you missed the news and want to see how the events unfolded, here is an article from my local paper, The Denver Post, on how everything happened.

I don't talk about politics often on this blog, I stick to the money.  I don't know how many of you are Democrats or Republicans, liberals or conservatives, libertarians or communists.  I am interested to see what you all think.  Please give your opinions in the comments.  I hope to see a lively discussion of health care reform here at Narrow Bridge.

As someone who cares about their financial situation, which all Narrow Bridge readers surely are, you probably care about your stuff too. As a stuff owner, it is important to have stuff insurance.

If you are a twenty-something renter like me, you do not own a home or have considerable assets. However, if you add up the value of your TV and electronics, DVD collection, laptop, shoes (for the girls), and other odds and ends, you probably have a lot of value in your house/apartment. How should you protect your stuff? Renters insurance.

Renters insurance is fairly cheap (most plans are about $20 a month). Considering the price of replacement in case of a break in or fire, this is a small price to pay. Make sure to take pictures of everything you own so it can be quickly and easily replaced.

If you have a car, insurance is probably required by law. This insurance will protect your car, other cars, and anyone in those cars in the event of an accident or vandalism. My car was vandalised this week (and inspired this post). The cost of repairs was over $3000. My deductible (the part I have to pay) was $250. Either way it sucked. However, I was protected for all costs over my deductible. This coverage costs more, and will depend on age, gender, where you live, and the car you drive. As a 23 year old male in Colorado with a nice, new car, I pay about $120 per month. This is a small price to pay for the big “what ifs” on the road.

If you own a home, you are generally required by the lending bank to have insurance. So, your homework today is to get renters insurance if you do not already have it.
P.S. That is not my car
Image by Tommy and Georgie.