# What is All About Insurance Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-10-15 Category: INSURANCE Category URL: https://financedigest.com/category/insurance Meta Title: Understanding Insurance: Protecting Assets Economically Meta Description: Learn about the various types of insurance policies, including property, life, health, and motor insurance. Protect your assets effectively with the right URL: https://financedigest.com/what-is-all-about-insurancehtml Insurance is an economic way of protecting one’s assets against financial loss. It is basically a form of financial risk management, mainly used to mitigate against the risk of an uncertain or contingent loss. The word ‘insurance’ derives from the Greek words meaning ‘payment for risk’. [Insurance may also be called financial risk](https://www.financedigest.com/how-the-global-insurance-market-will-keep-pace-with-evolving-risks-through-data-analytics-and-technology.html "How the global insurance market will keep pace with evolving risks, through data, analytics and technology") control. It can include a number of [insurance policies and services offered by a variety of insurance companies](https://www.financedigest.com/allianz-trade-wins-global-banking-finance-reviews-best-trade-credit-insurance-company-asia-pacific-2022.html "Allianz Trade wins Global Banking & Finance Review’s Best Trade Credit Insurance Company Asia Pacific 2022"), some of which are: property and casualty, life, health and life insurance, disability insurance, and motor insurance. The definition of an insurance policy is often difficult to explain, since there are many [types and sub-types of insurance](https://www.financedigest.com/types-of-insurance-for-yourself-and-your-family.html "Types Of Insurance For Yourself And Your Family") policies available today. However, when you are considering getting insurance it is important to understand the basics first, as this can help you make the right decision about which [type of insurance is suitable for your needs](https://www.financedigest.com/breaking-down-the-types-of-insurance-you-need.html "Breaking Down the Types of Insurance You Need"). Basic insurance policies cover a [wide range](https://www.financedigest.com/exclusive-wide-ranging-solarwinds-probe-sparks-fear-in-corporate-america.html "Exclusive: Wide-ranging SolarWinds probe sparks fear in Corporate America") of risks that could affect you and your belongings, and these include such risks as natural disasters, accidents, fires, and vandalism. However, this [basic type of insurance is not usually](https://www.financedigest.com/back-to-basics-for-cost-control-as-the-usual-levers-lose-value.html "Back to basics for cost control as the usual levers lose value") considered ‘insurable’, in the sense that it will not be paid out if it is lost, stolen, destroyed, or stolen. In some cases, this would be to [protect the person who owns it, but in most cases it is meant to protect you from unexpected loss](https://www.financedigest.com/fund-nature-protection-now-or-face-huge-losses-says-world-bank.html "Fund nature protection now or face huge losses, says World Bank") of something of value. An ‘insurable’ insurance [policy](https://www.financedigest.com/what-type-of-life-insurance-policy-is-right-for-me.html "What Type of Life Insurance Policy Is Right For Me?") is one where if it was to be lost, stolen, destroyed, or stolen, it would be paid for. This is because the owner has declared them to be [insurable and is legally obligated to pay](https://www.financedigest.com/are-you-getting-what-you-are-paying-for-when-it-comes-to-cyber-liability-insurance.html "ARE YOU GETTING WHAT YOU ARE PAYING FOR WHEN IT COMES TO CYBER LIABILITY INSURANCE?") for any damage or loss that may occur to them. Some examples of insurable items would be jewelry, artwork, vehicles, [real estate](https://www.financedigest.com/real-estate-brokers-vs-agents-which-one-should-you-work-with.html "Real Estate Brokers vs. Agents: Which One Should You Work With?"), and household goods. These are not all of the [things that could be insured](https://www.financedigest.com/ten-things-youre-doing-that-are-invalidating-your-car-insurance.html "TEN THINGS YOU’RE DOING THAT ARE INVALIDATING YOUR CAR INSURANCE"), but are examples of the ones that most insurance providers cover. If you are thinking about [buying](https://www.financedigest.com/buying-life-insurance-after-a-diabetes-diagnosis.html "Buying Life Insurance After a Diabetes Diagnosis") an insurance policy then you should definitely think about insuring your belongings. Comprehensive [insurance policies](https://www.financedigest.com/insurance-types-of-coverage-and-how-to-choose-the-right-policy.html "Insurance: Types of Coverage and How to Choose the Right Policy") are a good choice for those who own a great deal of property and assets, since these policies cover any items that are considered to be “non-insurable. Examples of non-insurable items are automobiles, boats, boats, boats, and more boats. These types of [insurance are often only covered when they are on the open water and are not protected](https://www.financedigest.com/how-to-choose-the-best-income-protection-insurance.html "How to Choose the Best Income Protection Insurance") from fire or theft. Comprehensive insurance is the most expensive [type](https://www.financedigest.com/understanding-the-different-types-of-car-insurance-covers.html "Understanding The Different Types Of Car Insurance Covers") of insurance, especially compared to other forms. However, it is very beneficial for those who have [assets that are not protected](https://www.financedigest.com/how-to-best-protect-assets-following-major-global-shifts.html "How to Best Protect Assets Following Major Global Shifts") by the basic level of insurance. Liability [insurance covers](https://www.financedigest.com/business-insurance-what-does-it-cover.html "Business Insurance: What does it cover?") people and businesses for any claim that may arise due to negligence on the part of another person or business. Common examples of [liability insurance](https://www.financedigest.com/bionics-guide-to-product-liability-insurance.html "Bionic’s Guide to Product Liability Insurance") to cover items such as damage caused when a driver or passenger in a vehicle is at fault for causing an accident, damage caused by a defective product, damage caused by animal attack, or property damage that arises due to vandalism or theft. Any claim made against a [property owner by someone who is at fault](https://www.financedigest.com/analysis-crisis-radar-falls-on-fault-lines-in-europes-commercial-property.html "Analysis-Crisis radar falls on fault lines in Europe’s commercial property") for an incident will also be covered under liability insurance. Medical [insurance is also a popular form of insurance and covers anyone who is injured while in their home or on someone else’s property](https://www.financedigest.com/simplifying-home-insurance-through-property-characteristics-data.html "Simplifying home insurance through property characteristics data"), in order to ensure that they receive medical attention and legal protection. This type of insurance is also commonly referred to as workers’ compensation insurance. Although it is not mandatory in many states, it is strongly recommended that you obtain this type of insurance. The amount of [insurance that you will need](https://www.financedigest.com/insurance-that-every-individual-needs.html "Insurance that every individual needs…") will depend on various different types of claims that may occur. To learn more about the different types of insurance available, it would be best to look [online or ask an insurance](https://www.financedigest.com/improving-online-visibility-for-insurers.html "IMPROVING ONLINE VISIBILITY FOR INSURERS") agent for advice. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---