Which of the following is protection against financial loss?
Asked by: Darby Treutel MD | Last update: January 21, 2026Score: 4.2/5 (72 votes)
What protects you against financial loss?
Insurance helps to protect you and your family against unexpected financial costs and resulting debts or the risk of losing your assets.
Which type of insurance provides protection against financial loss?
Life insurance will help provide financially for your survivors. Health insurance protects you from catastrophic bills in case of a serious accident or illness. Long-term disability protects you from an unexpected loss of income.
What can you protect against possible financial loss with?
Insurance is a contract – also known as a policy – that protects you against financial loss under certain circumstances.
What is the most important protection against financial loss?
Liability insurance is the most important. An analogy that says that a person should have the financial responsibility to pay up to $25,000 for bodily injury or death to any one person, $50,000 for bodily injury or death to one or more people in one occurrence, and $10,000 for damage to the property of others.
Question-6) nsurance is a means of protection against financial loss”.
What is the protection from financial loss?
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss.
What is the difference between collision and uninsured motorist insurance?
Uninsured Motorist Coverage: Protects you when the accident is caused by someone without insurance. Covers medical expenses and vehicle repairs. Collision Coverage: Pays for your car repairs no matter who's at fault. Usually comes with a deductible.
How do you cover financial losses?
- Special Corporate Insurance. Insurance package to protect your company's movable property and operations. Special Corporate Insurance also covers sudden breakage losses.
- Legal expenses insurance.
What is a protection against loss of funds by the bank?
As the country's Deposit Insurance Scheme, CODI ensures the orderly and timely protection of or access to covered deposits in the event of a bank failure. Another vital component of the financial sector safety net is the FSCA that ensures that financial institutions treat their customers fairly and transparently.
Is insurance protection against possible financial loss?
Insurance primarily protects against financial loss due to insurable risks, such as fire, theft, or natural disasters, but not against normal wear and tear or every possible risk. Policies often include deductibles and copayments to incentivize risk mitigation by the policyholder.
What insurance covers financial loss?
General liability insurance
This coverage protects against financial loss as the result of bodily injury, property damage, medical expenses, libel, slander, defending lawsuits, and settlement bonds or judgments.
What protects against financial loss in the event of an accident?
Auto insurance protects a person against financial loss in the event of an auto accident, damage to a vehicle, or theft. Most states require a minimum level of auto insurance, but there are different types of additional insurance coverage you may want to consider when purchasing an auto insurance policy.
What insurance protects against loss of income?
Disability income insurance can protect your income during your core earning years — when any interruption could substantially impact your ability to pay your bills and save for your goals. Many people can elect coverage through their employer as part of an employer-sponsored group plan.
What is 100-300/50 insurance?
Having a 100/300/50 auto insurance policy means you have $100,000 in coverage for bodily injury liability per person, $300,000 for bodily injury liability per accident, and $50,000 for property damage liability.
What is financial loss cover?
Financial loss insurance covers you for any workplace incidents that cause a customer or other third party to lose money. This is also known as the non–injury treatment extension to public liability insurance.
How do you protect your finances?
- Keep your financial records in order.
- Watch out for fraud and scams, and protect your identity.
- Choose insurance to meet your needs, including health care insurance.
Are banks insured against losses?
A: The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects bank depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails.
What is the bank protection called?
Deposit Insurance. The FDIC provides deposit insurance to protect your money in the event of a bank failure. Your deposits are automatically insured to at least $250,000 at each FDIC-insured bank.
What protects against the risk of financial loss?
Insurance is a way to manage your financial risks (i.e., you pay someone else to share your risks). When you buy insurance, you purchase protection against unexpected financial losses. If something severe or unexpected occurs, the insurance company pays you or someone you choose.
What is a financial loss?
A financial loss is a financial damage suffered by one or more people because of faulty service performed by an organisation. The loss is not directly attributable to personal injury or damage to property.
What are covered losses?
A covered loss is a claim your insurance policy will cover. For instance, a general liability policy will pay for bodily injury and property damage claims you become legally obligated to pay. In this example, the covered losses are bodily injury and property damage.
What provides basic protection against financial loss from medical bills?
Health insurance protects you from financial losses due to illness or injury. In exchange for your payments, known as premiums, your insurance company promises to pay for some or all of your health care services.
What does collision coverage cover?
Collision coverage
Collision pays for damage to your car resulting from a collision with an object (e.g., a telephone pole, a guard rail, a mailbox), or as a result of flipping over. The average cost is about $290 per year. Collision coverage reimburses you for the costs of repairing your car, minus the deductible.
What happens if you don't have uninsured motorist coverage?
Without uninsured motorist coverage, if you're injured or your vehicle is damaged in an accident with an uninsured or underinsured driver, you could end up paying for medical bills or vehicle repairs out of your own pocket.
Do I need personal injury protection?
While it varies by state, personal injury protection insurance may be a good idea if you have the option. Currently, several states require personal injury protection (PIP) coverage, regardless of whether you have health insurance.