Most of us carry insurance. Some we carry because it is required, such as auto or homeowner’s policy. Some we carry to protect against loss and provide peace of mind. Beyond required insurance coverage, selecting Colorado Springs insurance should be based around significant potential loss.
Insurance is risk management. You, the insured party, are attempting to transfer the cost of potential loss to an insurance company. In the event that the loss you are insuring against occurs, you will be compensated according your policy’s terms. The cost of this coverage is a regularly paid premium.
Carrying Colorado Springs insurance coverage makes it possible for you to protect yourself, your family, and/or your business from significant potential loss. You gain protection from serious financial hardship at a reasonable ongoing rate.
It is essential that you keep the concept of a “significant potential loss” in mind when making decisions about Colorado Springs insurance coverage. It would not be prudent or cost effective to insure against minor or minimal potential losses that you could manage on your own without considerable financial hardship. In these cases you would be astute to forego insurance coverage.
Insurance revolves around the concept of calculated risk. Coverage is only justified in circumstances where significant potential loss exists. Keeping this in mind can help you be calculated and prudent when selecting insurance for you, your family, or your business.