A policy is an insurance contract in which a policyholder receives financial protection or reimbursement from an insurance company against losses.
In order to reduce premium costs for insureds, the company pools the risks of its clients. The majority of people have insurance: for their automobile, house, healthcare, or life.
Insurance policies protect against financial losses caused by injuries, accidents, or damage to property.
Additionally, insurance contributes to the cost of liability (legal responsibility) for third-party harm or damage.
The most important takeaways are that insurance is a contract (policy) in which one party is insured against losses caused by particular risks or circumstances.
Insurance policies come in many different varieties. Most people buy insurance for their homes, cars, health, and life.
