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Insurance, in law and economics, 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 a guaranteed small loss to prevent a large, possibly devastating large loss. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

Commercially insurable risks typically share seven common characteristics.^[1]

The technical definition of "indemnity" means to make whole again. There are two types of insurance contracts; 1) an "indemnity" policy and 2) a "pay on behalf" or "on behalf of"^[3] policy. The difference is significant on paper, but rarely material in practice.

An "indemnity" policy will never pay claims until the insured has paid out of pocket to some third party; for example, a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an "indemnity" policy the homeowner would have to come up with the $10,000 to pay for the visitor's fall and then would be "indemnified" by the insurance carrier for the out of pocket costs (the $10,000)^[4].

insurance Subcategories insurance Articles Home is where the gnome is: ensuring the home and garden are protected by Paul McIndoe It’s probably fair to say that, for most people at least, home is where the heart is. And it’s through no coincidence that most people’s heart will be exactly where they invest so much of their time, money and energy. Indeed, a house ... Buying Versus Renting: What Would You Choose To Do? by Isla Campbell Many people dream of possessing their own home and so work hard to achieve this goal. However, there are those who view buying a property as a huge commitment and instead believe that renting is the way forward. For instance, there i... Where to Get Cheap International Travel Health Insurance by Brian Stevens Whether you're taking a once-in-a-lifetime vacation or just another business trip away from your family, if you're traveling to a foreign country you need to buy international travel health insurance. Here's how you can find a cheap policy t... A Holistic Approach to Health by Isla Campbell We have all heard the old adage that a healthy mind is a healthy body so just how do you go about striking the perfect balance? Keeping your mind healthy is a relatively straightforward task that won’t change the way you normally live your life... A Healthy Approach to the Credit Crunch by Isla Campbell According to research by pay consultants Industrial Relations Services the gap between average pay rises and the cost of living is at its biggest in almost 20 years. It comes as no surprise then to learn that people are finding it harder to cop... Private Health Insurance Plan - Where to Get the Best Rates by Brian Stevens You need a private health insurance plan, but is it really possible to find one you can afford? The answer is yes. It will take some work and you may need to make some compromises, but private insurance at affordable rates does exist. Se... Stop eating meat to save on life insurance by barry loughran If you take the meat out of your diet, not only will you reduce the chance of having heart disease or cancer, you can now have your life insurance premiums reduced by up to 6%. Scientific tests have proven that non meat eaters can look forward to a 4... Evaluating Health and Life Insurance Quotation Marks by Francis Adam Nobody of us is familiar with still how much time we have got on this globe. The excellent information is that your probabilities of living longer have by no means been improved. Most citizens in this day and age are probable to be alive for approxim... Cheap Small Business Health Insurance Quote - How to Get It by Brian Stevens Small business owners aren’t required to provide health insurance coverage for their employers but this benefit can help attract the best employees. Of course, you want to get the best small business health insurance quote possible for the lo... Health Insurance Following Disability - What do you understand by Disability Insurance? by Paul Smith Like health insurance is very vital to one and all, so is disability insurance. Disability insurance provides cover for occupational hazards that might cause you to have some unexpected accidents while at work. It also provides benefits if you become...