What is insurance?
An insurance policy is a contract that provides financial protection to an individual or entity. To make the payments more affordable for insureds, the company pooled clients' risks.
Insurance policies can protect from financial losses that could result from damage to insured property or liability for injury or damage caused to third parties.
How insurance works
There are many types of insurance policies that you can choose from. Most people and businesses will find an insurance company willing, for a fee. Auto, life, homeowners and health are the most popular types of personal insurance policies. The majority of Americans have at least one type of insurance. Car insurance is required by law.
Special insurance policies are required for businesses to insure against certain types of risks. A policy covering injury or damage that results from deep-frying is required for a fast-food restaurant. This type of risk is not applicable to auto dealers, but they do need coverage for injury or damage that may occur during test drives.
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