INSURANCE
Insurance, is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
Types of insurance
Auto insurance
if client have an accident,It protects client against financial loss . It is a contract between Customer and the insurance company. client agree to pay the premium and the insurance company agrees to pay Customers losses as defined in his policy. Auto insurance provides property, liability and medical coverage
- Property coverage-pays for damage to or theft of client's car.
- Liability coverage-pays for client's legal responsibility to others for bodily injury or property damage.
- Medical coverage-pays for client's cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses