Please enable JavaScript.
Coggle requires JavaScript to display documents.
The Essence of Insurance (usual process of insuring a business or oneself,…
The Essence of Insurance
Insurance
is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
-
-
The insurance rate
is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium
-
-
Companies and individuals protect themselves against loss, damage, or injury by taking out insurance policies, which are contracts covering them against future risks
In the case of compulsory insurances, such as injury to employees at work, it is society that has decided it wants the security or peace of mind which insurance brings. In the case of insurances being required to satisfy, for example, certain construction contracts, it is another business that wants to have the security of knowing that the people they are doing business with are protected by insurance.