Actuaries are a part of insurance companies, government actuarial departments, accounting firms, and some work independently as actuarial consultants.
The world of an actuary is full of uncertainties and is constantly analyzing events that are yet to happen.
Actuaries are some of the highest-paid careers that require specialized training with rigorous exams offered Society of Actuaries.
In insurance, the actuary determines the price of any risk. For example, in a vehicle accident, the actuary determines whether the driver was at fault, was the car faulty and the cost of such a risk.
It goes without saying that actuaries understand the vital role of having comprehensive insurance, especially those with consulting businesses.
Cost of Insurance for Actuaries
Insurance for actuaries protects against lawsuits and claims. The standard general liabilities insurance policy for a small actuary business depends on the location, the type of projects specialization, the history, claims history, and revenue.
Do Actuaries need Insurance?
Like any business, an actuary business is prone to damages such as fire, theft, vandalism, and natural disasters.
Actuaries, though involved in risk management, are also affected by unforeseen hazards that may have a financial impact on their business.
Cyber attacks and threats are authentic and can affect any business. Other hazards include a client suing the actuary for missing important data during analysis, or a client can slip and fall while at the premises for a consult.
The most important thing is for an actuary to be aware that lawsuits are common and, many times, not through any intentional mistake.
An insurance cover helps avert any damage that might occur, safeguarding your business.
Types of Insurance for Actuaries
There are various types of insurance coverage for actuaries. There are several factors to consider before choosing the right one for your business. These include
- Location of your consultancy
- Nature of your work or specialization
- The number of employees
- Size of your business
They determine the cost of your insurance and the type of insurance that suits your business.
Basic policies required for an actuary business
Commercial Property – the policy protects your business property against third party injuries and product liability claims.
Professional Liability – the insurance for actuaries helps cover legal costs if a client claims the actuary was negligent.
General Liability – the policy covers broad issues, which include third-party bodily injuries and property damage.
Workers Compensation – a commercial business with employees, requires this insurance. It covers medical costs and wages lost in the event the employee sustains work-related injuries or illnesses.
Commercial Auto – all vehicles used for business require this policy. It covers damages to the vehicle due to an accident, theft or vandalism.
It is crucial to consult a professional insurer to get better insight into the best policies for your actuary business.