Impaired life annuities

There has also been a significant growth in the development of Impaired Life annuities. These involve improving the terms offered due to a medical diagnosis which is severe enough to reduce life expectancy. A process of medical underwriting is involved and the range of qualifying conditions has increased substantially in recent years. Both conventional annuities and Purchase Life Annuities can qualify for impaired terms.

23. General insurance companies (non-life insurance, property/casualty insurance): commercial risks policies.

Commercial risk insurance is a risk management tool that enables businesses to transfer the risk of a loss to an insurance company. By paying a relatively small premium to the insurance company, the business can protect itself against the possibility of sustaining a much larger financial loss. All businesses need to insure against risks—such as fire, theft, natural disaster, legal liability, automobile accidents, and the death or disability of key employees.

Common types of losses and insurance

the most common types of risks encountered by businesses involve: property losses; legal liability for property, products, or services; and the interruption of business operations and income due to the occurrence of these other losses. Each category of loss can be managed with a corresponding type of insurance.

Property The types of property losses that can befall a business include theft, physical damage, and loss of use. Losses from theft can result from the criminal activity of outsiders, as in the case of burglary, or from the illegal activities of employees, including fraud, embezzlement, and forgery. Physical damage can occur due to fire, severe weather, accidents, or vandalism. For example, a manufacturing company might lose expensive raw materials in a fire, a retail store might lose valuable inventory in a flood, and any type of business could lose important records to computer vandalism. Although loss of use of property usually results from another covered event, in some instances it can occur without actual physical damage to the property. For example, an office building may be closed for several days due to a gas leak, or a restaurant may be shut down by a health inspector for unsanitary practices. In insuring against property losses, experts recommend that business owners purchase a comprehensive policy that will cover them against all risks, rather than just the ones specifically mentioned in the policy. Some companies can improve their rates by joining a highly protected risk (HPR) classification that is preferred by insurers. The HPR designation is based on stringent property protection programs and involves routine compliance checks.

Legal liabilityA small business's legal liability usually comes in two forms: general liability and product liability. General liability covers business-related injuries to employees, customers, or vendors, on the company premises or off, that occur due to the company's negligence. Product liability covers problems that occur due to defective merchandise or inadequately performed servicen both the manufacturing and retail sectors, a company is legally responsible for knowing if a product is defective. Whether the determination of the company's liability results from a court decision, a legal statute, or a violation of the terms of a contract, litigation can be time-consuming and expensive. Basic liability insurance is available to protect businesses against the costs associated with these and other sources of liability.

Company vehicleCompany vehicles must be insured, just like vehicles that are intended for personal use. Automobile insurance is usually handled separately from other property and liability coverage. Experts recommend that business owners be sure to list all employees on the insurance policies for company vehicles. In order to determine needed coverage and obtain the most favorable rates, small businesses can consult an insurance watchdog agency.

Business interruption When a business suffers a loss, as in the case of property damage in a fire, it may be forced to shut down for some time or move to a temporary location. The business thus may be forced to tap cash reserves in order to pay expenses that continue—such as taxes, salaries, loan payments, etc.—even when the company has no income. In addition, the company may face extra expenses in a crisis, such as employee overtime or rent on a temporary location. Business interruption insurance (also known as business income protection, profit protection, or out-of-business coverage) provides a company with the difference between its normal income and its income during a forced shutdown. The prior year's records or tax returns are usually used to determine the payment amount.

Business opportunity plans A wide variety of specialized insurance packages that cover a custom combination of risks are available to small businesses. One popular option is a Business Opportunity Plan or BOP, which acts as a starting point for many small businesses that require insurance. A BOP provides basic property coverage for computers and other office equipment, plus liability protection for work-related accidents. In some cases, a BOP might also include business interruption coverage that will maintain the company's income stream for up to a year if a catastrophe disrupts business. E-COMMERCEINSURANCE In recent years, the Internet has emerged as a major business tool for companies large and small. This has led some insurers to introduce policies that protect businesses in the event that their Internet presence is disrupted by hackers or other problems.