Insurance is a mean of pooling financial resources wherein a large number of people/company each pay a sum of money into a common fund. Then, when any one of them suffers a loss, the person/company will be paid a certain sum from the fund. Its objective is to accumulate funds to pay for losses as a result of the occurrence or loss. Regardless whether the person suffers a loss or not, the money is not returnable. Through insurance, the risks are transferred to the insurance company to mitigate the loss.
In the absence of insurance, three possible individuals bear the burden of an economic loss; the individual suffering the loss; the individual causing the loss via negligence or unlawful conduct; or lastly the insurance company who has been allocated the responsibility.
Well-planned insurance can serve as a method of both investment and financial protection. Don't allow misfortune to become a tragedy. Ensure you insure with experience professionals.