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What is Insurance?
Insurance is a protection against risk. Insurance provides backup or security to anything you want to get. There are many companies that provide insurance on almost everything. Companies charge some amount in order to provide insurances and customers pay it to get security.
Definition of Insurance
According to Wikipedia
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
According to Collinsdictionary.com
Insurance is an arrangement in which you pay money to a company, and they pay money to you if something unpleasant happens to you, for example, if your property is stolen or damaged, or if you get a serious illness.
Importance of Insurance to Business
Provides Security to the Business
Insurance provides security to the business. because there are many loopholes of the business where business can face huge losses i.e, fire, theft, change of fashion etc. So, Insurance Provide backups to the business in this kind of situations.
Increase Productivity of Business
When the business owner will free fear of loses then he can devote his much time to the business. The Businessman owner can work better for the maximization of the profit of the business.
Helps to Get Loan to Business
When the Business has insurance then getting the loan make easy because it creates faith on loan provider. Insurance also increases the goodwill of the business.
Make Social Co-operation Easy
The burden of loss is divided into many persons. That makes the insurance social co-operation.
Importance of Insurance to Society
Empower to Start Business
Insurance empowers people to start their own business. Because it provides security to the business owner in order to save their business setup cost.
Promotes Economic Growth
When people start the business it brings taxes to the government that helps the economy to grow.
Creates Employment
Insurance creates employment in the economy because insurance is a need for almost every business that it means to lots of employment for every level of employees.
Maintains Standard of Living
When the business and employment generated in the economy it upgrades the standard of living of the people in the nation.
7 Types of Insurance
Property Insurance
Property Insurance means that insurance companies provide certain security against the property of the person.
Fire Insurance
Fire Insurance means protection of the stocks or products against the fire. If the business owner takes the fire insurance it helps them or secures him against the fire of the products.
Life Insurance
Life Insurance means to get the security of health of the person. If any person got admitted in the hospital then Insurance company will pay the amount of the bill, it depends on the policy he took.
Property Insurance
Property Insurance means to provide protection against the damaged or destroy property. Property Insurance makes sure the businessman that company will pay the amount of the damage.
Personal Insurance
Personal Insurance means to get the insurance of yourself. It means that to get yourself insured. Personal insurance includes insurance of loss due to death, accident, and disease.