Insurance, in economics and law, is a form of risk management mainly accessed to hedge against the chance of a casual loss. Insurance is explained as the equitable convert of the risk of an impairment, from one entity to another, in replacement for a premium, and can be thought of as an assured and known small detriment to avoid a large, possibly terrible loss. An insurer is a company selling the insurance; a policyholder or insured is the guy or entity purchasing the insurance. The insurance cost is a factor accessed to define the amount to be paid for a some amount of insurance coverage, known the premium.

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