With the numerous insurance policies that offer various types of protection for important aspects of human life, there are some valuable assets that require extra effort in their protection. While common insurance policies such as automobile insurance, home insurance, and health insurance, among others cater to basic insurance needs, specialty insurance policies make provision for special cases like safeguarding your valuable assets. In this article, we’ll simplify the meaning of this insurance policy and how it can be instrumental in protecting your high-value assets.
What Is Specialty Insurance Policies?
Specialty insurance policies otherwise referred to as niche insurance policies are those insurance policies that make provisions for unusual or specific risks that are not usually covered in the standard insurance coverages. They often make provisions for the unique needs of industries, businesses, or individuals that are not originally covered by the general insurance policy. This is different from other policies as they offer targeted protection against risks that are usually overlooked.
Types of Specialty Insurance Policies?
This insurance coverage offers specified protection for your high-value assets and can come in different forms, here are some of the common examples of specialty insurance policies;
Cancelation Insurance
Here’s a scenario; as a business owners that rent halls for special events like concerts, conferences, and weddings, you have spent quite some money to prepare the hall ahead of a conference that is happening in two days only for the organizers to call you for a last-minute cancellation. In situations like this, you have to bear the loss, which if continues, you may suffer a heavy blow to your business. Having a cancelation insurance policy in place will reimburse part of your loss and offer some relief.
Cyber Liability Insurance
Cybercrime is increasing exponentially with the increasing usage of technology and many businesses have become the target of these attacks. Most standard insurance policies do not offer protection for cyber-related losses such as data breaches and other cyberattacks. Cyber liability insurance is a type of specialty insurance policy that can offer such protection.
Event Liability Insurance
Extreme sports such as skydiving, mountain biking, and skiing, among others, are high-risk events that many standard insurance will not originally cater to as it will put the insurer at a huge loss. However, these events can be protected by any type of specialty insurance policy.
Jewelry Insurance
If you or your partner is a jewelry fanatic which can easily attract the attention of burglars, it is highly recommended to have jewelry insurance in place. This insurance often provides coverage for expensive pieces of jewelry that fall outside the homeowner’s coverage.
Marine Insurance
Often referred to as boat insurance or inland marine insurance protects your watercraft. It often covers loss or damage to motorboats or fishing boats, pontoon boats, and yachts, among others. However, the protection doesn’t usually extend to canoes, kayats, and other small watercraft. Additionally, it protects businesses that own vehicles that operate on water, such as vessels and cargo.
High-Value Home or Rental Insurance
This special insurance offers protection for homes with special crafts or designs, special interior decoration, or homes that hold historical sentiments. High-value home insurance policy extends to high-value apartments or condos being rented. It can also cover high-value art, rugs, jewelry, and other special items, like antiques, that are stored inside the house.
Why You Need a Specialty Insurance Policy
How do you know if you need a special insurance policy? Well, consider the unique risks that are associated with your assets and businesses. Are they covered in the standard insurance policies you have? If no, consider the value of these assets and the potential loss you’d suffer should they be damaged or stolen.
Overall, these insurance policies are instrumental in covering the industry-related or niche-specific risks associated with your business or properties. These policies can be customized to the exact risks associated with your properties, assets, or business.
Does Specialty Insurance Cover Lawsuits?
Depending on the type of special insurance policy you purchase, you might be covered against lawsuits. For instance, errors and omissions insurance policies offer protection to businesses against negligence lawsuits. Similarly, cyber liability insurance also protects businesses from lawsuits associated with cyberattacks. In a nutshell, specialty insurance policy coverage often includes lawsuits provided the lawsuit falls within the policy coverage.
How Much are Specialty Insurance Policies?
It is often believed that specialty insurance policies are expensive and unaffordable. Well, that might not be the case. The cost of these insurance policies varies depending on your specific needs, associated risks, industry, and the amount of coverage you’re purchasing. Overall, you might be able to get coverage for as low as $50 a month. So, approach a professional who can guide you on what you need, negotiate with a broker, and you might just be able to find a special insurance that falls within your budget.
Secure More Assets With Special Insurance Policies
Before you go, bear in mind that special insurance allows you much more protection than stated above. They enable you to protect your special collections such as art and coin collections, watches, exotic animals, historical documents and books, furniture, and so much more. Additionally, high-risk industries such as construction, real estate, and doctors often use these policies for their protection against loss.
