Losses or damages are incurred continuously by motorists, business owners, workers, property owners etc. These damages or losses should have a financial cover which will protect them from the cost of damage or loss incurred. 

The process of getting this financial cushion is known as getting an insurance policy/cover. This is a contract between an individual or entity and an insurance company to manage the risk. The entity or individual receives protection from a potential loss and pays a fee known as a premium to the insurance company. This is done in preparation for a contingency such as the death of the policyholder or damage/destruction of their property

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