Insurance

This article is about risk management. Insurance is the equitable transfer of the risk of a loos, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurance, or insurance carrier, is a company selling the insurance,

the insured, or policyholder, is the person  or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called   the premium. Risk management, the practice of apprising and controlling risk,
has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurers promise to compensate  the insured in the case of financial loss. The insured receives a contract, called the insurance policy,  which details the conditions and circumstances under which the  insured will be financially compensate.