Why Should I Insure My Dog?

Don’t Be Penny-wise and Pound-foolish!

Why is insurance important? When a person has expenses, they use a budget to allocate funds to cover all those known costs. The unknown expenses, like a gastrointestinal illness or injury to your pet, cannot be budgeted for unless you do have insurance where your premium is a known cost. Insurance is, in principle, risk mitigation: taking your potential risks and reducing the severity of the financial implications if those risks are by chance realised.

THE HISTORY OF INSURANCE

Insurance has a historical background recorded from the times of the ancient world of the Babylonians and Chinese Traders some 3,000 years ago. Merchants would divide their goods between all the ships when travelling over treacherous waters to limit their losses (the proverbial not having all your eggs in one basket). Modern insurance, however, can be tracked back to London and the great fires of 1666. Nicholas Barbon was the creator of the first fire insurance company, which later morphed into accident cover. From meagre beginnings, the insurance industry has flourished and suffered, but developed in parallel with civilisation and its needs.

WHAT DO ALL THE TERMS MEAN, AND HOW DOES IT AFFECT ME?