Types of Insurance

Any risk that be quantified can potentially be insured. Specific kinds of risk that may give  rise to claims are known as perils. An insurance policy will set out in detail which perils are covered by  the policy and which are not. Below are non-exhaustive lists of the many different types of insurance   that exits. A single policy may cover risks in one more of the categories set out below. For example vehicle  insurance would typically cover both the property risk and 

the liability risk. A home insurance policy in the US typically includes coverage for damage to the home owners belongings certain legal claims against the owner and even a small amount of

Affordable Premium

If the likelihood of an insured event is so high or the cost of the event so large that the resulting premium  is large relative to the amount of protection offered then it is not likely that the insurance

 will be purchased even of an offer. Furthermore, as the accounting profession formally recognizes in financial accounting 

Large Loss

The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses and supplying the capital needed to reasonable assure that

Accidential Loss

The event that constitutes the trigger of a claim should be fortuitous or at least outside the control of the beneficiary of the insurance.

 The loss should be pure in the sense that it results from the event for which where is only the opportunity for cost. Events that contain speculative elements such as ordinary business risks or even purchasing a lottery ticket are generally not considered insurable.

Difinite Loss

The loss takes place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents and worker

 injuries may all easily meet this criterion. Other types of losses may only be definite in theory. 

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,