Insurance Benefits and You:
Four Ways Insurance Helps All
When people think about insurance, they often think about the moments they really felt they needed their insurance — after a car accident or at a doctor’s office, for example.
While some policyholders might not realize it, though, insurance plays a massive, vital role in our lives beyond those moments. Insurance helps ensure our society is functioning and thriving, and its impact is more extensive than you might think.
Here are four ways insurance benefits everyone:
1. Safety, Preparedness, & Minimizing Risks
Did you know that the first insurance organization in the United States was founded before the Revolutionary War even happened? In response to several fires in Philadelphia in the 1750s, Benjamin Franklin and other city residents created the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire.1 This initial insurance company focused efforts on addressing risk factors related to fires. They educated the public on fire safety, organized a fire department, and even invented the lightning rod!2
Centuries later, the modern insurance industry still helps policyholders to reduce risks and prevent losses. Thanks to the protection insurance provides, individuals can make major life decisions, whether personal (buying a home or a vehicle, for example) or professional (e.g. starting a business, hiring employees, and manufacturing products), without the fear of losing their investment!
2. Natural Disaster Recovery
Sometimes, no matter how prepared your family or your community is, misfortune can, unfortunately, happen. While some areas may be more prone to natural disasters than others, Mother Nature can surprise us all, and rebounding after a disaster can be costly and devastating for a community.
Fortunately, insurance helps ensure our communities can rebuild and recover following natural disasters. Insurance provides assistance in community recovery in the wake of hurricanes, earthquakes, blizzards, and more!
3. Economic Stimulation
Considering how extensive the insurance industry is, it’s likely not a surprise that insurance is a key contributor to the economy. In 2020, insurance companies paid $24.7 billion in premium taxes, “or $75 for every person living in the United States,” according to the Insurance Information Institute! Insurance companies invest trillions of dollars in both public and private sectors.
Insurance contributes to the economy in ways we may not even realize! Imagine that your favorite restaurant faced extensive damage after a fire in the kitchen. Without insurance, the restaurant would not be able to recover. With insurance, the restaurant could repair what was damaged and reopen. Servers, cooks, and other staff keep their jobs, and you continue to enjoy your favorite food!
In addition to ensuring the livelihood of our favorite businesses, the insurance industry itself is a booming business. Nearly three million Americans work in the insurance industry!3
4. Providing Peace of Mind
Last but certainly not least, insurance provides policyholders with peace of mind. If something unexpected happens, policyholders have the comforting knowledge that they’ll be covered.
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- Beattie, A. (2022, January 27). “The History of Insurance in America.” Investopedia. https://www.investopedia.com/articles/financial-theory/08/american-insurance.asp
- Property and Casualty Principles (5th edition). Kaplan Financial Education.
- “Facts + Statistics: Industry overview.” Insurance Information Institute. https://www.iii.org/fact-statistic/facts-statistics-industry-overview