Insurance is a financial agreement between an individual or organization (the insured) and an insurance company (the insurer). In this agreement, the insured pays a specified amount of money called a premium, in exchange for the insurer's promise to provide financial protection and compensation in the event of certain specified circumstances or losses. These circumstances or losses can include accidents, illnesses, property damage, theft, or other events specified in the insurance policy. The purpose of insurance is to mitigate the financial risk associated with these potential losses and provide peace of mind to the insured.
