What is insurance?

Insurance is a contract between an insurer who in return for a premium, indemnifies an insured against losses resulting from a specified event.

The insurance contract will always be for a defined term or on the occurrence of the specified event.

For a business a number of different insurance covers may be required including the following:

  • automobile insurance
  • liability insurance
  • life insurance
  • shop insurance
  • whole life insurance
  • health insurance
  • accidental loss insurance

For further information see the Wikipedia insurance definition.

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Last modified March 23rd, 2016 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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