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Vladimir79 [104]
3 years ago
15

What is the primary way in which insurance allows you to be covered for a loss

Social Studies
2 answers:
Sauron [17]3 years ago
8 0
Insurance allows for the recovery of a lost asset (or some form of value) by managing the risk or probability of that loss occurring through payment of a premium. Essentially insurers take on some of the risk associated with your loss occurring and are reimbursed in the form of the insurance premium you pay. As the probability of the loss occurring (e.g. your car being stolen) is quite low, the insurance company can make a profit provided that only a small percentage of insured parties lodge claims.
Rashid [163]3 years ago
6 0
Yeah basically what they said ^
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