Davidson Insurance

office (510) 390-1254
fax (510) 581-9411

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Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss.

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of a guaranteed small loss to prevent a large, possibly devastating loss.

An insurer is a company selling the insurance.

The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage.

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