Insurance is just a way of life nowadays. Some forms are mandated that you just carry by law, including driving, and employee injury coverage. Some versions are needed as a part of undertaking business; for example, vehicle coverage that a lending organization will demand that you carry, or insurance that a bank will need you to carry on a house you are purchasing. Then there are the kinds of policies that we just get simply because “we want to”.
The fact is that insurance serves many purposes more reaching than just protecting people or property like your automobile, house, or employees. You see, it in fact “allows” things to take place that in any other case couldn’t with out it. For example do you believe that you would be able to find a lender to finance a vehicle if it couldn’t be insured while you were paying it off? That’s highly unlikely.
So it was business men in the ports ocean ports of Holland who first conceived of the notion of shipping insurance way back in the 1500s. The worlds boundaries were expanding quickly as larger ships were traveling further in search of trade with far flung colonies. With so much cash at stake ship owners and those who invested in their cargoes required some method to offset risk as they traded in commodities like spices.
So the idea of commercial insurance moved outward from there until right now where you uncover folks executing business you are going to also discover insurance carrier taking on no less than a number of the risks they’re taking. In fact did you know that before a record company will sign on a new recording artist they have to be insurable and insured? That is that a carrier has to be able to cover any expenses to the label if they fail to adhere to the terms of their contract.
Then you can find firms that operate on a grand global scale, and possibly it is possible to recall the US bailout of the insurance giant AIG at the beginning of this last recession? Deemed too massive to fail soon after heavy losses, it was felt that if AIG collapsed so too would global commerce. The downside was that there basically was no other firm great enough to cover the giant international corporations that drive the world economy.
So the next time you reach into your mail box and pull out your most recent bill for some sort of coverage you might have, do not complain. Just be glad that you’ll find carriers all round that can assume the risks that enable so many of the organizations that we must operate. Like the coverage that you simply have on your vehicle, so you’ll be able to make payments on it. Or the policy where you work that makes it achievable for the firm to employ you.
