Insurance

Insurance means protection from financial loss, it is a form of risk management primarily used to hedge against the risk of contingent or uncertain loss. The amount of money charged on insurer to the policy holder for the coverage set forth in the insurance policy is called premium. It is a contracts that transfers the risks of financial loss from an Individual or business to an insurance company. The company collects small amount of money from its clients and pools that money together and pay losses.

Types of insurance

I. Life insurance:is a contracts with an insurance company. Its exchange for premium payments. It provides lump sum of money payments known as death benefits to beneficiaries upon the insured's death.

2.property insurance:is abroad term for a series of policies that provide either property protections coverage or liability.

3.Fire insurance:

This are the policies classified into 15 types based on insurance hazard insured risk, business types, policy rulers. The 15 types are

A. valued policy B. Valuable policy C. Specific policy D. Floating policy E. Average policy F. Excess policy G. Declaration policy H. Adjustable policy I. Maximum value or discount policy J. Reinstatement policy J. Comprehensive policy K. Consequential policy L. Sprinkler lekage policy M. Add on cover policy N. Escalation policy.

4.liability insurance:it provides protections against claims resulting from damages to people and property covers legal cost and payment. Types of liability insurance are 1.commercial general liability 2.Directors and officers liability insurance. 3.professional indemnity insurance. 4.Cyber risk insurance 5.commercial crime insurance 6.carrier legal liability insurance.

5.Guarantee insurance:it is used as a security for the performance of a piece of work, which has been agreed upon in a contracts. It is used as a security for advance payments.

6.social insurance :it is the protection of individuals against economic hazards(such as unemployments., old age or disability) which the government participates or enforced the participation of employees and affected individuals. The government provides health Care to the elderly or poor families with children. It helps the healthcare expenses of elderly and improvised.

7.Marine insurance:protections from business losses incurred during water transport operations. Marine is a safe haven for shipping companies because it helps to reduce financial loss due to possible loss of cargo. There are four standard types of marine insurance which are 1.hull 2.cargo 3.frieght 4revenue and negligence. Insurance plays vital roles in both government and individuals and private businesses.