What is Insurance and How it Works
Insurance is a contract, represented by a policy, under which an individual or entity receives financial protection or compensation from the insurance company. The company collects client risks to make payments more affordable for the insured. Insurance policies are used to hedge against the risk of financial loss, both large and small, which may result from damage to the insured person or his property, or from liability for damage or injury caused to a third party. How Insurance Works There are many types of insurance policies available, and almost any individual or business can find an insurance company that is willing to insure them - for a price. The most common types of personal insurance policies are car, health, home and life insurance. Most individuals in the United States have at least one of these types of insurance, and car insurance is required by law. Businesses need special types of insurance policies that cover certain types of risk faced by certain businesses. For ...
