- 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.
- 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 of insuranceearlier ensurance ; from Old French enseurance: see ensure
- a. The act, business, or system of insuring.b. The state of being insured.c. A means of being insured.
- a. An arrangement or agreement that protects someone from incurring future losses, as from damage, theft, illness, or death, especially a contract that transfers the risk of a specified loss to another party in exchange for the payment of a premium.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.
(usually uncountable, plural insurances)
- A means of indemnity against a future occurrence of an uncertain event.
- The car was totalled, but fortunately I had insurance.
- The business of providing insurance.
- After five years in banking, I switched to insurance.
- Metaphoric: Any attempt to anticipate an unfavorable event.
- The sky was clear, but I took my umbrella for insurance.
- Blackjack: A bet made after the deal, which pays off if the dealer has blackjack.
- I only take insurance if the count is right.
- (countable) An insurance policy
- automobile insurance
- car insurance
- casualty insurance
- credit insurance
- earthquake insurance
- fire insurance
- flood insurance
- freight insurance
- group insurance
- health insurance
- liability insurance
- life insurance
- malpractice insurance
- no-fault insurance
- pet insurance
- property insurance
- term life insurance
- transportation insurance
- unemployment insurance
- whole-life insurance
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.
insurance - Legal Definition