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5 things you need to know no matter what – when it comes to INSURANCE

Insurance feature GOODInsurance is a scary subject…we know. You may be a super successful woman business owner, or an accomplished executive woman leader but still, if insurance isn’t your business hard to understand the “need to know” when it comes to Insurance. After all – how much do you need? What should you be aware of? Is there such a thing as being “over-insured”? There’s a lot to think of. We asked one of our industry insiders, and a MyCity4Her subscriber and business woman Stacie Cuthie to share her TOP 5 “Things you need to know no matter what” when it comes to Insurance and here’s what she says…

MyCity4Her Media’s Top Five Things Women in Business “Need to Know” about Insurance

1.Did you know a misrepresentation in your insurance application could cost you your coverage?

If there is a material misrepresentation in the application, the insurance company has the right to rescind the policy and leave the insured without coverage. You want to make sure you are dealing with an insurance agent that is asking all the right questions and not just assuming the answers in order to complete your application.

2..Why is it important to give the insurer notice of a claim as soon as possible?

Because if the insurance carrier can demonstrate that a delay in reporting a claim prejudiced its ability to investigate or defend the claim, then coverage for the entire claim may be precluded.

3.When selecting an insurance agent make sure you know the difference between a direct underwriter and a broker.

• Direct underwriter- is a agent that represents and works for one insurance carrier example Allstate, State Farm etc. You will only be getting one carrier price.

• Broker- is an agent that works for their client and represents several carriers. You will be getting quotes from several carriers thus they will all be competing for your business.

4.When purchasing property insurance know the difference between actual cash value and replacement value?

• Replacement Value means the cost to replace the property of comparable material and quality used .Replacing Old for new.
• Actual cash value means “fair market value,” the cost to replace with new property of like kind and quality, less depreciation.

5.When purchasing insurance know the difference between an admitted and Non admitted carrier?

Insurance companies that choose to be a non-admitted business are not required to follow state regulations. They would have to prove to be financially able to conduct business. They would not have to report their rates and can charge according to their risk exposure. This allows insurance companies to take on higher risk applicants who have greater loss potential.

Insurance companies that are admitted have to follow guidelines that are set by the department of insurance (DOI) of the state they conduct business in. The admitted insurance company’s rates as well as their practices, advertisements and cash reserves are regulated by that state.



  1. I would also add, check to ensure your insurance has long-term care coverage. Many middle-class families don’t check and can’t afford the cost when the time comes.


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