Insurance

Insurance mitigates exposure to risk

Obtaining insurance involves paying a premium to an insurance firm against a specific event or set of events.

If the event occurs, resulting in loss or damages to the insured party, the insurer compensates the insured in part or in full for the loss.

There are many types of insurance policies that can be taken out, against an individual’s home to a celebrity’s legs or hands. Insurance companies will be too happy to issue a policy against most mishaps – the issue of course, is the cost of the policy.

Generally, the more likely the event is, the higher the insurance premium. The less likely it is, the lower the premium. The most popular types of insurance policies are: