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Some insurers might specify that belongings are kept in a locked room, and may only cover a claim if there's evidence of forced entry.
"If they don't purchase enough insurance to cover a claim, the complainant is going to come after that person's personal property".
Ken Sturm, who owns several restaurants and nightclubs, including P. J. Clarke's and Iridium Jazz Club in New York, said he became interested in having a captive insurance company when his traditional insurance policy did not cover a claim.
Here's the basic problem: Car insurance companies generally will not cover a claim that results from you putting your personal vehicle into commercial use, say by running a taxi service on the side — or making yourself into a one-person Hertz.
As civil liberties organization the Electronic Frontier Foundation explains, "Right now, it is very difficult to find prior art — previous inventions and published ideas that cover a claim — especially for vaguely worded software patents".
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"I told you so," say those who claimed that was the plan all along.What convinced the rest was the announcement earlier this month that Yuganskneftegaz, Yukos's main production subsidiary, would be sold to cover a $3.4 billion claim for back taxes for the year 2000.
And, finally, I cover a few claims you should look for when it comes to tax preparation.
Analysts said Lloyd's increase in reserves by about $1 billion was mainly to cover a jump in claims from lawsuits against corporate executives after the dot-com meltdown and the big corporate scandals last year.
The money is part of the $1.25 billion settlement that Switzerland's banks agreed on in August 1998 to cover a range of claims, including those from people who had inactive accounts dating from World War II.
"If you cover up a claim with just three fingers, it's probably a pretty good claim," he says.
Most policies do, but some may consider this a "business activity" and not cover such a claim.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com