Surrounded by uncertainties and litigation as we were, there are plenty of instances when we would need insurances to hedge ourselves against damaging humans or natural calamities. In some instances, though, insurance is a top priority, like when we have a company with several employees, for one. We require employer's liability insurance in this case, given that under the employment contract we should guarantee the health and safety of our staff.
Another case in which such a requirement arises is when we perform our job by dealing with the public. When you serve food and drinks to customers, whether you do it in a restaurant, fast food or coffee shop, the health and safety of the said customers there and in connection with what they consume is your full responsibility. As such, whether a client breaks their neck after falling on a wet surface or eats something that results in their hospitalization, without public liability insurance, you'll be liable for all the expenses, either in the form of compensations or legal fees.
And you need insurance not only in relation to your personnel and clients, but also in relation to what the first may do to the latter. In some domains such harmful actions are more probable, like, for instance, if you are a dentist, lawyer, beautician or surgeon or own a related business. With professional indemnity insurance, the third party harmed will be compensated and the legal fees paid as well, if it comes to that, by the insurance company and not from your own pocket.
If, further, you are a broker and you didn't act promptly upon an indication of an imminent decrease in stock prices, causing your clients serious financial losses, who is going to pay? Of if you are a cosmetic surgeon and left too obvious scars after a less successful operation? So, in all these cases, it would be better to let others pay if you could, wouldn't it?
Natural calamities are other cases when insurance is a requirement and so are human actions that may affect as badly what we own, by stealing or plain destruction. Therefore, we need to insure our possessions, whether estates, contents or stock against such likelihoods. As such, insurances are required whenever something may threaten our means of living or working.
