Insurance is a form of risk management which helps in protecting oneself from financial loss.

An entity which provides insurance is known as an insurer and a person or entity who buys insurance is known as an insured or policyholder.

The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured. The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called the premium. The premium is paid by the insured to the insurer in regular interval of periods.

If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing.