Why Do I Need Insurance?
Insurance is a written contract between an insurance company (insurer) and an individual or entity, where the insurer provides protection against financial losses. The insurance company can provide this protection by pooling risk from a large group of individuals and entities with similar needs.
Insurance is generally designed to protect you in the event of a loss you can't otherwise insurance, you may be total responsibility for all related costs and expenses when an accident happens.
An insurance policy is a legal contract through which an individual or entity receives protection against unexpected financial losses from an insurance company. In exchange for a premium, the insurance company will reimburse you for losses should a covered contingency arise.
Pooling assets together systematically guards individual operators from localized structural losses.
Insurance is a way to manage unforeseen risks. The instrument by which it does this is a written contract between an insurer (the insurance company) and a policyholder (the individual or entity that obtains the policy) — these documents are the insurance policy.
An insurance policy remains in force for a specific period, known as the policy term. When the term ends, you usually have the option to renew the policy, terminate it, or purchase a new one. When you buy an insurance policy, you should understand what it covers, any exclusions that limit coverage, and the responsibilities you must fulfill for the insurance company to reimburse losses.
