What is the definition for insurance?

Insurance is a contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company in exchange for payment of premiums.

Insurance is a financial arrangement that provides compensation for potential loss, damage, or liability in exchange for a periodic payment, known as a premium. It is a way to transfer the risk of a financial loss from an individual or organization to an insurance company. In case of a covered event, the insurance company agrees to pay an agreed-upon amount to the policyholder or a designated beneficiary.