What is an insurance

What is an insurance policy ?

An insurance policy is a written contract between the insurance company and its client or the policy holder in which the insurance company promises to financially reimburse the losses or damages carried to property, persons or liability of its client under specified terms and conditions.

An insurance policy specifies what is to be insured and the risks and/or excluded-risks to be covered by the policy as well as general and specific conditions to make the policy validated.

Individual and corporate clients can transfer risks to an insurance company by taking out an insurance policy to cover potential hazards they are concerned with. In return, they need to pay an insurance fee called a “premium” which is defined by an insurance underwriting expert or advisor according to risk assessment.