The Basic Facts on Insurance - What can you insure?

Where the chances of any peril or incident occurring can be measured statistically, as we have seen, a theoretical premium can be calculated. Almost all such risks are insurable. However, where this cannot be done, insurers may often decline to consider a proposal. For example, a shoe manufacturer is unlikely to find a company willing to accept insurance indemnifying him for stock depreciation resulting from changes of fashion.

Certain other risks are not insurable either on legal grounds or because of public policy. For example, you could never insure yourself in advance for an accident occurring while in the act of blowing the lock of a bank safe as your part in a robbery.. Similarly, no doctor or solicitor could insure himself against being struck off the list of his respective professional association.

One of the fundamental principles of insurance is known as insurable interest'. The effect of this legal phrase is that you can only take out a policy provided you or your family would suffer some financial loss as a result of the insured event occurring.

Husband and wife have an unlimited interest in one another's and their own lives, so they may take out personal accident and life policies for up to any amount they wish. In other branches of insurance, however, the insurable interest' is limited to a maximum amount such that the insured cannot actually make a profit from the disaster occurring - there is thus no point in over-insuring. The policies described in this website qualify under the insurable interest' clause, but care must be taken when you move house, sell goods or change policies. For example, if you sell your house but keep the policy in force, you cannot recover any compensation should the house subsequently burn down. You lost your interest in the property the moment it was sold out of your possession. Unless there are special reasons, you cannot insure the lives of your friends or of the Prime Minister or the Queen. Where, as in these cases, you would not suffer any personal financial loss as a result of their death, such a policy becomes a gamble and is seen to be against the public interest. On the other hand, if you are a partner in a professional firm you can insure the life of the other partner as the extra commitments from his death could cause financial losses.


What you can insure

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

Salon Gold Insurance

Cheaper Insurance for Salons, Freelance Hair and Beauty, and Mobile Businesses - click here

read on: Insurers and salesmen

Where the chances of any peril or incident occurring can be measured statistically, as we have seen, a theoretical premium can be calculated. Almost all such risks are insurable. However, where this cannot be done, insurers may often decline to consider a proposal. For example, a shoe manufacturer is unlikely to find a company willing to accept insurance indemnifying him for stock depreciation resulting from changes of fashion.

Certain other risks are not insurable either on legal grounds or because of public policy. For example, you could never insure yourself in advance for an accident... see: Insurers and salesmen