Definition about Insurance

What does insurance mean?

Insurance,as my thought, is the act of insuring property, life, one's person, etc., against loss or harm happening in specified activities of daily life as acident, health, death or in consideration of a payment proportionate to the risk involved.

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.