BeNew Insurance

Standard of Care Standard of care refers to a professional's duty to act reasonably and provide quality services. If you fall short of the standard of care, a client usually has the right to sue. In many industries, the standard of care is commonly determined by the action or inaction a reasonable, professional person with similar training would take in a similar situation under similar conditions. The standard of care can vary drastically across industries and professions. In some cases, a professional organization defines the standard. Other times, it’s determined by the typical behavior of professionals in the industry. Either way, having specialized knowledge and training usually means a higher professional liability standard of care. In essence, the standard of care is a legal benchmark that helps determine whether someone has acted responsibly and with due care. It's a crucial concept in many areas of law, including tort law, contract law, land professional liability

Actual Cash Value The actual cash value (ACV) is the current value of an insured item. It is a method used by insurance companies to determine the value of damaged or lost property. It represents the replacement cost of the item minus depreciation.   Insurers use either the actual cash value or the replacement value of items when calculating commercial property insurance claims. The actual cash value is how much the used item is worth, while the replacement value is how much it would cost to purchase a new item to replace it. To determine the actual cash value, an insurer will look at the item's current market cost, and then factor in depreciation. An item's depreciated value is based on how old the item is, and how much useful life it has left at the time of the loss. Example of actual cash value in a claim. Let's say your two-year-old laptop is stolen and you have an actual cash value property insurance policy. Two years ago, the laptop cost $2,000, but today a simil

Risk Management vs. Business Continuity Planning Risk management provides the foundation for BCP. By effectively identifying and mitigating risks, organizations can reduce the likelihood and severity of disruptions. BCP then takes over, focusing on how to respond to and recover from those disruptions that do occur.   In essence: Risk Management: Prevents problems. Business Continuity Planning: Solves problems. While both risk management and business continuity planning (BCP) are crucial for organizational resilience, they serve distinct purposes and work in tandem to protect businesses from disruptions.   Risk Management Risk management is a broader, proactive approach to identifying, assessing, and mitigating potential risks that could harm an organization. It involves: Risk Identification, Risk Assessment, Risk Mitigation, Risk Monitoring and Control. Business Continuity Planning (BCP) BCP is a more specific focus within risk management. It outlines the steps an organization

Commission in Reinsurance In reinsurance, a commission is a fee paid to the ceding company by the reinsurer. This commission compensates the ceding company for various expenses related to underwriting, administration, and business acquisition.   Types of Reinsurance Commissions: Ceding Commission: This is the most common type of reinsurance commission. It's a fee paid by the reinsurer to the ceding company to cover costs like underwriting, administration, and business acquisition. The commission is typically expressed as a percentage of the reinsurance premium.   Profit Commission: This is a performance-based commission paid to the ceding company if the reinsured business generates a profit. It's designed to incentivize the ceding company to underwrite profitable business and manage claims effectively.   Brokerage Commission: This commission is paid to a reinsurance broker for their services in arranging reinsurance contracts.   Purpose of Reinsurance Commissions:

No Premium No Cover It is a principle in the insurance industry with adoption in most Insurance Acts, or by convention it adheres that the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk unless the premium is paid in advance. An insurance premium cover is an amount of money that an individual or a business pays to the insurance provider periodically to ensure financial guarantee to their lives, property or businesses. To avoid the "no premium, no cover" situation: -Set Up Automatic Payments: This ensures your premiums are paid on time, reducing the risk of lapses. -Review Your Policy: Understand the grace period and reinstatement terms of your policy. -Budget for Premiums: Allocate funds for your insurance premiums as a regular expense in your budget. Remember the "no premium, no cover" principle is a fundamental rule in insurance. Always prioritize

Strict Liability Insurance Strict liability is the responsibility that small business owners have for damages or injuries their products cause, even if they did nothing wrong. For example: -Products that cause harm due to inherent defects (product liability). -Injuries caused by dangerous animals. -Environmental damage caused by certain activities. While there's no single "strict liability insurance" policy, some existing insurance options might provide coverage in situations involving strict liability, depending on the specific policy wording and circumstances. Strict liability is the responsibility that manufacturers, wholesalers, distributors, or retailers have for damages or injuries in cases where there was no fault or negligence. Strict liability normally applies in three situations: when dangerous animals are involved, when someone engages in highly dangerous activities, or when a defective product hurts someone or damages property. How does strict liability