- The definition of insurance is protection against something going wrong.
- When you pay premiums in exchange for a policy that pays out when you crash your car in a car accident, this is an example of an auto insurance policy.
- When you save money in case you lose your job and are out of work, this is an example of insurance in case you lose your job.
insurance definition by Webster's New World
- an insuring or being insured against loss; a system of protection against loss in which a number of individuals agree to pay certain sums (premiums) periodically for a guarantee that they will be compensated under stipulated conditions for any specified loss by fire, accident, death, etc.
- a contract guaranteeing such protection: usually called : see policy, sense
- the premium specified for such a contract
- the amount for which life, property, etc. is insured
- the business of insuring against loss
Origin: earlier ensurance ; from Old French enseurance: see ensure
insurance definition by American Heritage Dictionary
- a. The act, business, or system of insuring.b. The state of being insured.c. A means of being insured.
- a. Coverage by a contract binding a party to indemnify another against specified loss in return for premiums paid.b. The sum or rate for which such a contract insures something.c. The periodic premium paid for this coverage.
- A protective measure: biking helmets that provide insurance against a head injury.
insurance - Business Definition
insurance - Investment & Finance Definition
A product that a person or business buys, typically through monthly payments, that provides financial protection against risks. The monthly payments, called premiums, are made by a large group, which spreads out the risk for the company issuing the insurance. Losses are paid for from premium revenue that has been invested to earn a return that will cover the insurance company’s expenses and produce a profit. Consumers can buy insurance to protect against financial loss due to health issues, car accidents, damage to a home, and to protect against the negative financial effect of a relative’s death, among other things. Businesses can buy insurance to protect their property against damage and theft and to protect themselves against liability.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana. Used by arrangement with John Wiley & Sons, Inc.
insurance - Legal Definition