Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as the premium. Insurance allows individuals, businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate. We say “significant” because if the potential loss is small, then it doesn’t make sense to pay a premium to protect against the loss. After all, you would not pay a monthly premium to protect against a $50 loss because this would not be considered a financial hardship for most.
Insurance is appropriate when you want to protect against a significant monetary loss. Take life insurance as an example. If you are the primary breadwinner in your home, the loss of income that your family would experience as a result of our premature death is considered a significant loss and hardship that you should protect them against. It would be very difficult for your family to replace your income, so the monthly premiums ensure that if you die, your income will be replaced by the insured amount. The same principle applies to many other forms of insurance. If the potential loss will have a detrimental effect on the person or entity, insurance makes sense.
While the Patient Protection and Affordable Care Act has provided more uniform access to health insurance, its coverage often falls short of the assets needed to deal with serious medical events. American National offers a variety of insurance products to supplement the basic coverage of an individual’s primary health insurance policy. Supplemental insurance can bring peace of mind and act as a much-needed buffer between serious illness and the unfortunate possibility of a depletion of savings, creation of long-term debt, and even potential bankruptcy. Our offerings include cancer, critical illness and hospital indemnity, accidental death and dismemberment, and credit disability. In addition, the Health Division is a major provider of catastrophic (often called stop-loss) coverage for employers choosing to self-fund their medical plans.
For 110 years, American National has been providing financial products, services, and peace of mind. Our commitment to our founding principles of strong management, prudent investment and financial strength has enabled us to successfully navigate some of the most turbulent times of the past century and grow into the diverse enterprise we are today.
Great American has been innovative leader in the crop insurance industry since it issued its first crop policy in 1925. Corp Insurance Division provides the tools you need in the form of specialized crop insurance coverages, which can insure your revenue strea even if elements outside your control go awry. The means even in the face of worst-case scenario you ill have the guaranteed income you need to keep your operation functioning properly.
Fire insurance, and what became the modern insurance industry, developed primarily in England after the Great London Fire in 1666. The U.S. property-casualty insurance market evolved from British practices, with the first U.S. fire insurer started by Benjamin Franklin in 1752. By the early 1900s, many major types (or “lines”) of insurance we know today had developed. Today, this segment of the insurance industry provides protection from risk in two basic areas: protection for physical items, such as houses, personal possessions, cars, commercial buildings, and inventory (property), and protection against legal liability (casualty).
Property insurance is a “first-party” coverage. It provides for losses related to a policyholder’s own person/ property. Casualty/Liability insurance is a “third-party” coverage. It provides protection for a policyholder against the claims of others.
These two basic types of coverage are written for both individuals or families (“personal lines” policies) and businesses (“commercial lines” policies).
Personal lines policies include homeowners insurance, renters insurance, and vehicle coverage. For example, homeowners policies cover both fire damage to a house and/or contents, plus legal defense costs and liabilities should a person be injured on the policyholder’s property.
Commercial lines products are written for businesses and other organizations (churches, schools, cities, non-profits), and include packages such as “Business Owners Policies” as well as commercial general liability, workers’ compensation, commercial property, and product liability insurance. Commercial property policies cover buildings and the organization’s property. It may include coverage known as “business interruption,” designed to help a company with business losses that result from a covered risk to property.
Commercial liability policies protect policyholders against financial responsibility for injury or property damage resulting from a policyholder’s premises, products, services, or other operations. One example of commercial casualty coverage is workers’ compensation, which deals with lost earnings and medical expenses of employees injured on the job.