Everyone understands that the fundamental concept of buying insurance is to protect one’s own financial interests. What is not well understood is that our legal relationships with others create obligations to protect their financial interests as well. When we assure that those legal obligations are taken care of, we secure our own financial well-being.
Once this abstract discussion is reduced to everyday terms, the concept does not seem so strange. These are relationships of great importance to individuals and businesses in their everyday lives and activities and one’s insurance decisions are interwoven with these relationships.
These relationships can include:
* mortgage lenders on your home;
* lenders on your auto loan;
* lenders on other items, whether as lenders or lessors on contracts for business equipment; and,
* persons with whom you have contracted to sell goods or to provide goods and services, who require that they be named as additional persons insured under your policies.
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