Insurance

Insurance provides a safeguard against financial loss, serving as a form of risk management to protect against uncertain or contingent losses. The entity offering insurance is referred to as the insurer, insurance company, insurance carrier, or underwriter. Those who purchase insurance are known as policyholders, while the individuals or entities covered by the policy are termed insured.

The insured receives a document called the insurance policy, outlining the conditions and scenarios in which the insurer will provide compensation to the insured or their designated beneficiary. The fee paid by the policyholder to the insurer for the coverage described in the policy is known as the premium. If a covered loss occurs, the insured files a claim with the insurer, which is then reviewed by a claims adjuster for processing.