When is a Hazardous Risk Too Hazardous?
Never. Well, almost never. Petersen International Underwriters approaches each case on its own merit and believes that every employed U.S. citizen and U.S. resident deserves income protection. The conceptual role of the disability insurance company is to limit risk and pay claims with a portion of the total insurance premium collected. So why does this not work for all risks and why do most companies exclude hazardous occupations? Theoretically it does work, but when risk increases, so do the premiums, and as premiums increase, the demand for insurance generally decreases. This makes offering high risk coverage on an individual basis difficult, but not impossible. In order to appeal to more prospective clients, premiums must be manageable and appropriate for the risk and the individual.