INSURANCE: A BRIEF IDEA ABOUT INSURANCE

INSURANCE

What's insurance???? If you're healthy, if you don't get sick much, if you don't go to the doctor much or use your health insurance much, you are a genetic lottery winner. It has nothing to do with the way you live, nothing to do with doing the right things. It's just sheer luck, and you are gonna pay for that.

That was a famous quote by RUSH LIMBAUGH .
So....If you are well , then you are Gonna pay for that .
Actually that was just a lighter part . But don't take the chance to  recieve and odd look from the insurance manager  ;-)

Now , let's move to the serious part . What is actually the "INSURANCE"
I prefer references . So , let's see what wikipedia says,
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for money. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

We have got another defination from  Google

an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium



you can't name much of the businesses on this planet which does not get benifit from  commercial insurance coverage. If the compmany is all about  retail, sales, insurance, computer repair, graphic design or e-commerce, its obvious that any kind of damages may happen anytime. Claims can arise from the delivery of faulty merchandise, from professional neglect that causes medical or financial suffering in your clients, from damage to your property on your business premises or even from accusations of slander if you should speak publicly about a client or competitor. In order to protect your assets against claims that are ruled in the complainant's favor, you need professional liability insurance.