Insurance or Assurance is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An insurer is a company which selling the insurance product; an insured is the person or entity who buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, usually called the premium.
Insurance: An agreement by an insurer to provide compensation or another benefit upon the occurrence of a specified risk causing harm to property or the person of an insured (Webster's New World Law Dictionary)
Insurance: n. A contract in which one party (the insurer) agrees for payment of a consideration (the premium) to make monetary provision for the other (the insured) upon the occurrence of some event or against some risk. For such contracts to be enforceable, there must be some element of uncertainty about the events insured against and the insured must have an *insurable interest in the subject matter of the contract (Oxford Dictionary of Law)
Insurance: An agreement by an insurer to provide compensation or another benefit upon the occurrence of a specified risk causing harm to property or the person of an insured (Webster's New World Law Dictionary)
Insurance: n. A contract in which one party (the insurer) agrees for payment of a consideration (the premium) to make monetary provision for the other (the insured) upon the occurrence of some event or against some risk. For such contracts to be enforceable, there must be some element of uncertainty about the events insured against and the insured must have an *insurable interest in the subject matter of the contract (Oxford Dictionary of Law)