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Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

Short Returns.

An entity which provides insurance is known as an insurer, insurance company, or insurance carrier.

Reliable Terms.

A person or entity who buys insurance is known as an insured or policyholder.

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The insurance transaction involves the insured assuming a guaranteed.

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The loss may or may not be financial, but it must be reducible to financial terms.

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The insured receives a contract, called the insurance policy, which details the conditions and circumstances.

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In order to be an insurable risk, the risk insured against must meet certain characteristics.

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The conditions and circumstances under which the insured will be financially compensated

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If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster.

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The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange.