Insurance

Insurance is a mechanism for transferring risk by pooling it. A person or entity buys insurance to transfer their risk of loss to the insurer in exchange for a fee, the premium. The insurer assesses the probability of loss and combines many such exposures together to pool the risk. If an insurable loss occurs then the insurer is contractually bound to pay.
Related term: carrier, insurance policy, reinsurance

Here are some types of insurance:

• commercial crime,
• commercial general liability,
• commercial property,
• cyber,
• directors and officers liability,
• employment practices liability,
• errors & omissions,
• fiduciary liability,
• miscellaneous professional liability,
• not-for-profit D&O,
• professional liability, and
• technology errors & omissions.