Most people don’t really think about the importance of insurance – until they need to file a claim. Then having good insurance is a major relief.
When things go wrong, insurance helps make them right again. National Insurance Awareness Day is June 28, and it’s a good time to reflect on how much insurance helps us.
The History of Insurance
Insurance can seem like a modern concept, but it’s actually been around for a long time. According to Investopedia, the idea of spreading risk is as old as human existence. King Hammurabi’s Code, an ancient Babylonian monument, has what can be considered the first example of a written insurance policy.
Britannica explains that ancient Rome had societies that paid funeral costs in exchange for a monthly fee, and ancient Greece had insurance contracts. In the 15th century – the start of the Age of Exploration, when European ships sailed to the New World – marine insurance took off. More insurance companies emerged in response to the Great Fire of London in 1666.
Life Without Insurance
When you stop to think about it, it’s not surprising that societies have developed different types of insurance throughout history. Without insurance, an unexpected loss can be devastating. Imagine sinking all of your money into a ship – and then having the ship sink into the ocean, taking your investment with it. People in the 15th century wanted to mitigate this risk, and marine insurance remains an important product line today.
But even if you don’t have marine investments, you can understand the importance of insurance. Losing your house to a fire or storm is bad enough. Not having the funds to rebuild makes it worse. Insurance can't prevent bad things from happening, but it can help make our lives whole again.
As losses from natural disasters increase, insurance is becoming even more important. In 2020, insured losses from world-wide natural catastrophes totaled $82 billion, according to the Insurance Information Institute, up from $57 billion in 2019.
Do You Have the Insurance You Need?
Insurance is protection. Because there are many types of risks, there are many types of insurance. We have commercial insurance to protect our businesses, auto insurance to protect our cars, homeowners insurance to protect our houses, disability insurance to protect our incomes, life insurance to protect our loved ones, and more. There’s liability insurance, property insurance, health insurance – you name a risk, and there’s probably an insurance coverage for it.
Don’t wait until something goes wrong to consider whether or not you have the insurance you need. By then, it will be too late. Review your coverage now and talk to your insurance broker about any additional coverage types you might need.
At Heffernan Insurance Brokers, we’re proud to be in the insurance business and we take our responsibility of protecting people and businesses very seriously. You can count on our team to be there for you when it matters most!
Need an insurance partner? Contact us anytime.