Required Insurance
What Does Required Insurance Mean?
Required insurance refers to the insurance policy that a policyholder must have in order to keep a status or property. It might be, for example, the health coverage required by the state for every citizen or the property insurance required for a commercial structure to be allowed to operate.
Insuranceopedia Explains Required Insurance
There are many situations in which insurance is mandatory. These occur when a person or an entity needs to be absolved of certain risks and only insurance is capable of doing so.
The state, for instance, requires vehicle owners to get insurance before they are allowed to drive it and driving without insurance is an illegal act.
The same is true for employers—they need to provide insurance or ensure that their employees are given (health and retirement) insurance. If they fail to do so, they jeopardize their business.
