Risk Management
Paid protection against loss due to injury or property damage?
Insurance
The possibility of loss or injury
risk
Covers injury to someone else
Bodily Injury Liability Coverage
Covers towing, rental, motorcycles, and snowmobiles.
Miscellaneous Coverage
Covers personal items inside the home like furniture, clothes, and electronics.
Personal Property Coverage
A contract between a person and an insurance company to cover a specific risk.
Insurance Policy
Anything that increases the likelihood of loss through peril
hazard
Covers damages to the policyholder's vehicle.
Collision Insurance Coverage
Protects drivers from people who cannot pay insurance claims.
Uninsured/underinsured Motorists Protection
Insurance that covers financial payment for someone injured on your property who does NOT sue you.
Medical Payment
The price an insured person or business pays for insurance protection for a specified period of time.
premium
Any threat of loss with no opportunity for gain
pure risk
Covers damage to another persons vehicle or property.
Property Damage Liability Coverage
Coverage to protect people who live in an apartment.
Renters insurance
Coverage that will cover the cost of temporarily living someplace else if the home is uninhabitable.
Loss of use
The systemic process of managing risk to achieve your objectives.
risk management
Risk that is caused by human mistake
human risk
Covers medical bills for injuries to drivers and passengers.
Medical Payments Coverage
Covers rebuilding a home that was destroyed by fire.
Homeowners policy
Covers other buildings on the property such as a detached garage, sheds, barns, etc.
Other structures coverage
Two factors that will affect how much you have to pay for an insurance policy on a vehicle?
Age of driver, how many miles you drive, type of vehicle, amount of deductible
The possibility of a catastrophe caused by flood, tornado, hurricane, fire, or earthquake
natural risk
Covers damage to a policyholder's vehicle caused by things other than an accident.
Comprehensive Coverage
Your auto policy has a premium of $200, a deductible of $1,000, and a limit of $20,000. You are in an accident that caused $6,000 in damages. How much does your insurance company pay?
$5,000
Covers lawsuits for injuries to someone else or damages to their property.
Personal Liability coverage