Trusted Choice® is a national brand that represents the 140,000 Licensed Independent Insurance Agents & Brokers of America. These agents are independent business owners who are bound by a common commitment to serving their customers.
There are two primary types of insurance agents. “Captive” agents are employees of one insurance company and can only write policies for that company. This means they are limited to their company’s coverage plans.
Trusted Choice® Independent Insurance Agents, however, are able to source from a variety of reputable national and local providers. They have the flexibility to offer a broader range of options at highly competitive prices, so you get a personally tailored plan to suit your needs and budget.
HOW DOES HOME INSURANCE WORK?
When you buy home insurance, you’re buying a safety net for your home. If your home is damaged or destroyed, it can cost thousands of dollars – even hundreds thousands of dollars – to repair or rebuild.
Without home insurance, that money has to come out of your pocket. But if you’re insured, you can file a claim to pay for the damage and help rebuild your dreams. Your homeowners insurance will also cover theft of your personal belongings, includng when you take them with you in your car or while you travel. In the event you suffer a loss, whether from burglary, fire or a severe storm, call your insurance agent or insurance company to begin the claims process. An adjuster will work with you to assess the damage and determine your compensation.
The benefits you receive will depend upon several factors, including:
The limits set on your policy, both for your structural property and your belongings.
The deductible amount you pay before your coverage kicks in.
Whether you have chosen coverage for the actual cash value (depreciated) or the replacement value of your home and belongings.
HOW DOES RENTERS INSURANCE WORK?
Renters insurance will help to pay your costs if you suffer a loss, such as a burglary. The amount of compensation you will receive depends on the type of loss and the amount of coverage you have in place. For example, you can buy “actual cash value” (depreciated) coverage for your personal property, or you can buy replacement cost coverage for your personal possessions.
Certain items such as jewelry, collectibles or other valuable items may have a value limit or require additional insurance coverage to provide full coverage for loss, theft or damage. You will also be responsible for a deductible, which is an out-of-pocket expense.
In the event that a visitor to your home, condo or apartment is severely injured, that person can file a claim with your insurance company, and your insurer will address the claim.
HOW DOES CAR INSURANCE WORK?
Car insurance helps you to recover from damage, injuries and expenses related to a collision or other incident. It is not designed for you to come out ahead financially, but it is designed to keep you from suffering major financial hardship due to an accident, whether it’s your fault or not.
Car insurance is about risk transfer. If you don’t have insurance, the financial risk is on you in the event of an accident. Buying auto insurance mitigates some of that risk. For the cost of your premium, the insurance company will take on much of that risk for you.
HOW DOES BUSINESS INSURANCE WORK?
Business insurance is a contract between the insurance company and the business. The insurance company agrees to share the business risk with the business entity in exchange for premium payments. In the event of a covered loss, the insurance company pays for the financial losses the business incurs up to the limit of the policy after the deductible amount is paid by the business filing a claim. At the time of a loss, the business will typically file a claim. If a fire destroys a portion of the business premises, for example, the company will file a claim against the property insurance policy. An adjuster will assess the damage and process the claim. The company will then receive the appropriate amount of compensation for the loss.
There are many different scenarios with regard to business risk and how insurance claims are filed. For example, in the event that the incident is a loss suffered by a customer of the company, the injured party will likely file a claim against the businesses’ liability policy. How the claim is processed depends upon the size of the claim, whether the matter can be settled with an insurance payment, and if the claim results in a lawsuit.
HOW DOES GENERAL LIABILITY INSURANCE WORK?
General liability insurance provides insurance protection for a company’s assets, financial obligations, legal defense, and any settlements or judgments awarded to an injured party. It may also include claims for copyright infringement, false or misleading advertising, or libel and slander. If a patron is injured in some way in the course of doing business with your company, your general liability insurance will provide coverage.
HOW DOES ERRORS & OMISSIONS INSURANCE WORK?
Errors and omissions insurance (or "E and O") covers a business for a service rendered which did not have the expected or promised results, or which results in a loss or personal injury suffered by the person receiving those services. It also covers situations where the individual or company failed to render service at all. These are known as errors and omissions. As an example of errors and omissions insurance, if a financial advisor provided investment advice that resulted in a client’s financial loss, those circumstances could result in an errors and omissions liability claim.
This type of insurance is also known as malpractice insurance (for medical practitioners) and professional liability insurance for practicing lawyers and other professionals.
Jon Jepsen, CIC
Jon Jepsen has been in the insurance industry since 1994 working as a broker, agent, and risk manager. As a specialist in property and liability exposures, he has become one of the premier experts on insurance and risk management issues pertaining nonprofits, technology firms, beauty salons, art galleries, manufactured housing communities, property managers, religious institutions, community banks, and the LGBT community.