Insurance is a formal agreement bound by law whereby a party is assured of future financial security or repayment/refurbishment in case of unexpected damage by an insurance company. To help reduce the payment load from their customers, the companies use risk pools to lessen the cost. In case damage occurs to the insured product, there are laws put in place to shield the individual or business from financial breakdown as a result of the damage.
Types of Insurance
Insurance companies have worked to develop various options for their customers, whether businesses or individuals, a platform with several insurance policies are available for them to choose from. Policies such as auto, health, and life are the most common in the market; some are supported by the government, for instance, auto insurance in the United States.