Insurance is an action to the protection; it can be wealth, property, business, or health. With insurance, if there is something happened with the things, you will get the replacement cost of your damage thing. For instance, if you have a car, and it is broken because of accident, the insurance will protect it and replace the loss caused by the accident. It is one of the ways that we can do to the reducing of the risk.
Life is full of risk and unpredictable things. And the main function of insurance is to move the risk from our self to the other parties; the insurance parties provide the service of protection and peace to the customer. By this, customer should pay some money (called as premium) to pay the peace and the protection.
Basically, insurance is a contract between the company and the customer. The company will bear all of bad harms. There are some characteristics of event that can be insurance; first, the harm is uncertainty time; second the value of loss is limited; and the third, the harms is predictable. The action of insurance is well known nowadays and it becomes something well-prepared to face the uncertainty, like health and educational fee.
When we talk about insurance, the first thing that will come across to our mind is some kind of commercial company that will provide you a service in assuring your life from unpredictable future loss, like accident or even death. But the type of insurance that being offered is not only life insurance, there are so many kinds of insurance that will protect not only yourself, but also your company from unpredictable loss risk.