what is insurance 
insurance is a contract represented by a policy in which a policyholder receives financial protection or reimbursement against losses from an insurance company the company pools clients risks to make payments more affordable for the insured most people have some insurance for their car their house their healthcare or their life insurance policies hedge against financial losses resulting from accidents injury or property damage insurance also helps cover costs associated with liability legal responsibility for damage or injury caused to a third party 1investopedia daniel fishel