Insuring Against Catastrophes
Insuring Against Catastrophes
Lesson Goals:
• Assess risks
• Determine and develop risk management
strategies
• Define insurance types and how they relate to a
home-based or micro business
Insuring Against Catastrophes
How to manage risk:
Avoid
Reduce
Accept
Transfer
Insuring Against Catastrophes
Basic Types of Insurance
• Health
• Life
• Income
• Property
• Liability
Insuring Against Catastrophes
Liability Insurance
Protects against financial losses
suffered by others for
which you are responsible
Insuring Against Catastrophes
Types of Liability Insurance
General
Umbrella
Policy
Product
Automobile
Professional
Insuring Against Catastrophes
Steps to Determine Insurance Needs:
1.
2.
3.
4.
What are the risks?
Rate the likelihood of loss.
Rate the size of loss.
Consider risk management
strategies
5. Discuss with insurance agent/
broker