Insurance

Insurance for businesses operates on the same fundamental principles as insurance in general. The insurance business depends on risk management to identify the risks of the situations that will result in claims and to determine the premium and the limits to coverage accordingly. The basic principle of insurance is to pool money from the many insured customers in order to pay for the losses of the few. This requires a large number of similar customers, in order that resources can be pooled; furthermore, the losses that can be covered must be large, accidental, definite, and calculable. That is, the loss must be meaningful to the insured; its occurrence must be outside the control of the beneficiary; it must have taken place at a known time ...