Liabilities Insurance

Insurance companies are legally bound to meet the financial obligations of their customers. This means that they must be able to pay claims when they are due and have enough cash on hand to do so. While we all like to think that Liabilities of Insurance Companies have huge reserves of cash at their disposal, this is not always the case. You see, insurance companies often face unexpected circumstances that can put a strain on their finances and make it difficult for them to pay claims in a timely manner. Liabilities of Insurance Companies Liabilities are the obligations of an insurance company. This can be in the form of money, goods or services. Liabilities can be classified into two types: Legal Liabilities – These are obligations to pay damages as per law in case of any event that may occur to a customer during his/her tenure with the insurance company and is not covered under any other type of liability mentioned below. Contractual Liabilities – These are contractually commit...