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.
