Insurance

Financial arrangement protecting against specified losses.

insurance

A financial arrangement whereby one party (the insurer) agrees to compensate another (the insured) for specified loss, damage, or liability in exchange for a premium. It protects against financial risk.

Pronunciation

/ɪnˈʃʊrəns/

Etymology

Insurance derives from the Old French 'assurer,' meaning ‘to make secure.’

Explain Like I’m 5

Insurance is like having a safety net: you pay a little bit regularly, and if something bad happens that's covered by your insurance, the company helps pay for it.

Fun Facts

The first known insurance policy dates back to ancient Rome
Lloyds of London started as a coffee house where people met to insure ships
Insurance helps businesses and individuals manage risk

FAQ

What is insurance? It's a contract protecting against financial loss
How does it work? You pay premiums, and the insurance company covers specified losses
What are common types? Health, auto, home

Hypernyms — Broader Categories

risk management financial product

Hyponyms — Specific Examples

health insurance life insurance auto insurance property insurance

Meronyms — Parts or Components

premium policy claim

Holonyms — Wholes or Groups

financial planning risk mitigation

Indexes

financial legal management service

Coverage

Built by Tim Jones