Having insurance is crucial to any business owner, whether that be the owner of an independent cafe or a multinational company. It not only protects you against physical damage but also from cyber attacks and data breaches. Additionally, employees, as well as the owner of the business are protected, which gives them peace of mind.
Insurance can be taken out against a myriad of different aspects of life and is not just limited to businesses.
Mitigating Risk
Insurance is an important instrument when it comes to mitigating risk, whether you are taking blackjack insurance at the casino or protecting your business. In the casino setting, blackjack insurance works as a way to minimise losses against the house when playing a hand.
Players will be offered insurance when the dealer is showing an ace, which can be worth one or eleven. If the dealer’s face down card is a king, queen, jack or ten, they will make blackjack and automatically win.
Unlike policies for car insurance or home insurance for example, in Blackjack, insurance is offered at a fixed rate of 2:1 for every hand that is played and does not increase or decrease in value at any point.
In Business and Other Aspects
This is similar to how insurance companies work. They charge a fee, whether monthly or annually, to take on the risk of something bad happening to a business, person or piece of property.
Companies calculate the cost based on the likelihood of an event happening against what you are insuring. The higher the likelihood of the event occurring, the higher the premium will be that the person will have to pay.
All businesses can take insurance to protect against a variety of scenarios. Employers liability insurance is a legal requirement in the UK for any business that employs staff, which is the majority of businesses. Employers liability insurance is one of two types that are mandatory under UK law.
The most common type of insurance is car insurance as it is a legal requirement for anyone who owns a vehicle. Policies are calculated by companies using a series of different metrics that take into account the person’s age, occupation, the car itself and how secure it is. Where the person lives is also taken into account as these factors all indicate levels of risk, which will dictate the cost of the policy to the person.
Home insurance policies are also widely taken out by people in order to protect the individuals property against damage. This could be because of fire or flooding. Despite not being compulsory, it is estimated that 34.67 million property insurance policies will be active in 2024.
In addition to the home itself being insured, contents insurance can also be taken out in order to protect valuables within the home in case of accidental damage, theft or flooding. This could be appliances such as cookers, fridges and televisions, or valuables such as jewellery, art works and antiques.
Health insurance policies are also available in order to safeguard the policy holder and their loved ones in the event of an accident or emergency.
Travel insurance is also popular and offers protection to people who fall ill or get injured whilst travelling or away on holiday. Policies can be taken out to protect yourself and your personal belongings whilst abroad. It is recommended that everyone takes out a travel insurance policy before going abroad as you are covered for any medical bills and repatriation if you need to be treated at home.
Conclusion
Insurance at its fundamental level across all industries is there to protect against risk and provide security. In spite of there only being two legal mandatory types of insurance, the UK’s insurance market is booming and claims to be the fourth largest in the world and the largest in Europe. The sector employs around 300,000 people and manages £1.8 trillion worth of investments. A little cost can go a long way to protecting yourself, your business and your assets.
