Insurance is a contractual agreement between an individual or entity (known as the policyholder) and an insurance company, whereby the policyholder pays a regular premium in exchange for the promise that the insurance company will cover them for certain financial losses or damages that may occur in the future.
The specific types of losses or damages covered depend on the type of insurance policy that is purchased, but common examples include property damage, medical expenses, and liability claims. In essence, insurance provides financial protection against unexpected events and helps individuals and businesses manage risk.
Disclaimer: The questions and answers above are for educational purposes only. They are meant to provide the public with a general conceptual understanding of insurance and do not constitute advice or analysis. Some answers might be incomplete, outdated, and even not always accurate depending on the particular rules applicable to your state. Importantly, these questions and answers are generic and do not relate to any particular insurance product, including products available on the Waffle platform. If you have any questions about any of your own insurance products, always check the policy first and direct your questions to your insurance agent or the insurance company underwriting your policy.