Insurance

Insurance is a financial arrangement that provides protection against potential future losses or risks. It typically involves the transfer of risk from an individual or entity (the insured) to an insurance company (the insurer), which accepts the risk in exchange for a premium payment.

When an insured event occurs, such as an accident, illness, or damage to property, the insurer compensates the insured according to the terms of the policy, which outlines coverage limits and exclusions. This system enables individuals and organizations to mitigate financial losses associated with unforeseen events and helps to ensure greater financial stability. Insurance can cover a wide range of areas, including health, life, auto, property, and liability, among others.