Insurance

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of risk of loss, from one entity to another, in exchange for a premium. The insurer is a company selling insurance. The rate of insurance is a factor used to determine the amount, called premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of assessment and risk control has evolved as an area of study and practice.