Small Business Insurance

Most adults know the importance of insurance and are familiar with the insurance basics.  They’ve learned firsthand how it can protect their families and their possessions. 

But many young adults who are just starting out may be a bit confused by some of the terminology and types of insurance available. This article will answer the most frequently asked questions about insurance to help clear up some of the confusion. 

What Are Premiums, Deductibles, and Limits?

If you already have insurance, you’re familiar with the terms premium, deductible, and limits.  But, are you sure about what the terms mean?  Each one contributes to the overall cost of your insurance policy whether it is home, auto, farm, business, or life insurance.  Understanding the terms will help you reduce the overall cost of your insurance policy.


A premium is an amount you pay to the insurance company to keep your policy in force.  This can be done on a monthly, quarterly, twice-a-year, or annual basis.  Premiums are calculated based on the types of coverage and limits you choose.  Some of the factors that affect the cost of the 3 most common types of insurance include:

Homeowner’s Insurance Automobile Insurance Life Insurance
> Deductible amount

> Coverage limits

> Your claims history

> Credit rating

> Age of the home

> Type of construction

> Local fire protection

> Optional coverages

> Your age

> Driving record

> Type and age of the vehicle

> How much you drive

> Credit rating

> Types of coverage 

> Limits you select

> Where you live and drive

> Your age and health

> Your medical history

>  Life expectancy

> Amount of coverage 

> Length of the policy

> Tobacco use

> Occupation & hobbies

> Family medical history

Some insurance companies offer discounts for bundling and other considerations.  At Sandifer Insurance Agency, we will be happy to talk with you about the options we offer.


Simply put, a deductible is what you pay out of pocket toward a covered claim.  Once the deductible is paid, the insurance pays the rest, up to the coverage limit. Choosing a high deductible will lower your insurance premiums. 

Some policies may have several deductibles.  For instance, an automobile policy may have a separate deductible for each coverage.


On any insurance policy, the limits are the amount an insurer will pay toward a covered claim.  Higher limits mean higher premiums, but the extra cost may be worth it.  The cost of repairing or replacing home or vehicle rises each year.  So, you want to make sure you have adequate coverage.  

These are some insurance basics you may want to consider when choosing coverage limits:

Homeowner’s insurance limits:

  • How much it will cost to rebuild at current construction costs.
  • The value of your belongings (personal property coverage).
  • Amount of liability coverage to assist if someone is injured on your property.

Automobile insurance limits:

  • Do you want more coverage than the minimum required by law?
  • Do the limits you’ve chosen meet state requirements?
  • Should you include optional coverage such as personal injury protection and medical payments coverage?

If you are undecided about choosing the right limits, one of our experts at Sandifer Insurance Agency will be happy to assist you.  With our extensive knowledge of all things insurance, you can be certain of getting the best coverage for your needs.

What Is Liability Coverage?

Liability insurance is coverage that provides protection if the insured party is responsible for other people’s personal injuries or property damage. The coverage takes care of legal costs and payouts if the insured person is found legally liable for the claim.  

Most states require liability coverage for automobile policies, product manufacturers, and individuals practicing law or medicine. Worker’s compensation, indemnity insurance, commercial general liability, and personal liability are also types of liability insurance.

Unlike other types of insurance, this protection only applies to third parties, not the policyholder.  Keep in mind that liability insurance does not cover criminal acts or intentional damage.

What Is Property and Casualty Insurance?

Property and casualty insurance are often bundled into one policy.  Property insurance covers things such as your home or automobile.  Casualty insurance pays when an accident caused by you results in property damage or injuries to another person.

Typically, property and casualty insurance are bundled together in homeowner’s, automobile, renter’s, landlord’s, and condo insurance policies.

What Is an Insurance Endorsement?

An insurance endorsement, also known as a rider or amendment, is used to add, delete, exclude, or change your insurance coverage.  It takes precedence over the original agreements outlined in the policy.

Endorsements can be issued at the beginning of the policy or can be added to an existing policy during mid-term or renewal.  Adding an endorsement can affect the original policy premium.  

By adding an endorsement, you can add or delete people, locations, and coverages.  An endorsement can be issued by the insured or by the insurer and remains in force until the original policy expires. 

Insurance Provides Peace of Mind

The primary purpose of insurance is to provide protection against financial burdens or losses in the event of a crisis.  While we can’t predict the future, we can prepare for the unexpected by having the right insurance coverage.  

Insurance is the backup plan that provides emotional and financial peace of mind before and after a catastrophic event occurs.  Here are a few examples:

✓  Homeowner’s:  Ensures that your home can be repaired or rebuilt after a disaster.

 Automobile: Protects you from financial hardship in the event of a vehicle accident.

✓  Life Insurance: Ensures your family’s financial security in the event of your death.

Can you put a price on your peace of mind?  Not likely.  Even so, an insurance premium is one expense that will benefit you more than any other.  No matter what, with the right insurance, you have financial support in case an unforeseen event arises.

Sandifer Insurance Agency makes choosing the right insurance easy.

Are you shopping for insurance but don’t know where to begin?  We can help.  At Sandifer Insurance Agency, we offer a free, no-obligation quote.  You’ll get straight answers to any questions about coverage options and costs. 

At Sandifer, we have over 40 years of experience in the insurance business, and our team is dedicated to providing exemplary customer support.  As a local agency, we are proud to serve Cheraw, SC, and surrounding areas.  

Whether you need homeowners, auto, farm, business, or life insurance, Sandifer works with America’s top insurance companies to ensure that you get the right coverage at the best price.     

Contact us today before you make a final decision on your insurance needs.  We are conveniently located near the lovely historic district of Cheraw so it’s easy for clients to stop in when they need to.  Call or stop by today to find out how we can assist you in making informed choices regarding your insurance.