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Financial insurance is a type of insurance policy that is frequently purchased by businesses.

Insurance policy financial definition. In return for an insurance premium the person or firm obtains insurance cover against financial risks. It can also protect against various other types of commercial financial losses. Insurance is a means of protection from financial loss. The policy will be worth a designated amount and is used as protection against risk of some kind.

It provides coverage that protects them from losses due to a partner in a contract failing to meet their obligations. This makes them the policyholder. A person or organization purchases an insurance policy. An entity which provides insurance is known as an insurer insurance company insurance carrier or underwriter a person or entity who buys insurance is known as an insured or as a policyholder.

Insurance may be obtained directly from an insurance company or through an intermediary such as an insurance broker agent. It is a form of risk management primarily used to hedge against the risk of a contingent or uncertain loss. Businesses use all kinds of insurance in order to protect themselves including policies designed to protect their financial commitments. The policy describes the specific types of coverage life health etc the restrictions that apply and the applicable deductibles and premiums.

Insurance is a contract represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The term insurance describes any measure taken for protection against risks. A written agreement for insurance between an insurance company and a person who wants insurance. When insurance takes the form of a contract in an insurance policy it is subject to requirements in statutes administrative agency regulations and court decisions.

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