Wednesday, July 11, 2012

Insurance: Helping You Fulfill Your Personal Fiduciary Responsibility

Chicago Auto InsuranceWhat would you do if you were put in charge of assets or property belonging to someone you loved? If for some reason your parents, siblings, grandparents, children or other loved one was unable to care for themselves and you had control and decision-making power over their assets, you would probably do everything in your power to protect and preserve them.

As a fiduciary, one entrusted with control over another's assets, you would owe it to your loved one to act in an honest, forthright way and to make decisions in good conscience with the goal of preserving and protecting the property your relative could no longer care for.

It’s likely that one of the methods you would use to protect their assets would be the purchase of insurance policies. After all, if the assets were to be damaged or stolen while under your care, the absence of insurance could spell a total loss for your loved one and that's not something you'd want them to endure, especially when it could be so easily and affordably prevented by the purchase of insurance.

If this is the case, then why would you not protect your own assets the same way? By default, we are each our own fiduciary and, as such, have a responsibility to ourselves to act in good conscience and protect our own assets.

There are some instances that require the purchase of insurance in order to satisfy other entities. More specifically, drivers must carry Chicago auto insurance to comply with their state regulations and those who have mortgages and auto loans must carry insurance to protect the investment of their lenders. But state regulations and lenders are no more important than your own personal interest in the property that you pay for. Insurance should always be purchased, first and foremost, to protect your financial interest since that is, understandably, your own top priority.

Whether you handle assets for another individual or yourself and your family, you have a fiduciary responsibility to protect and preserve those assets. Give us a call at Oxford Insurance Group today and see how we can help you fulfill your personal fiduciary responsibilities through the purchase of affordable insurance policies.

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