What is insurance coverage?

Insurance coverage is the amount of risk or liability that is covered for an individual or entity by way of insurance services. Insurance coverage, such as auto insurance, life insurance —or more exotic forms, such as hole-in-one insurance—is issued by an insurer in the event of unforeseen occurrences.

What is insurance & how does it work?

Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured. Most people have some insurance: for their car, their house, their healthcare, or their life.

What is the premium for my insurance coverage?

The premium for your insurance coverage is the amount you pay for your policy, which can be monthly or annually. Your policy’s premium amount is set by the insurance company based on what you’re insuring, how much risk it carries, any discounts you have and more.