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Insurance In law and economics, 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.
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