An insurance is a written agreement which promises a reimbursement in case of loss, after the insured has paid a certain amount of money regularly, in order to cover a hazardous situation. Insurances are seen as the transfer of risk from one entity to another, in return of a sum of money. The insurer evaluates the insured item, becomes aware of the size of the risk and promises by signing a contract with the insured, to reimburse an agreed sum of money, should the insured suffer the loss.

Insurances may be of a lot of kinds, according to the hazard they insure against. One of the most common is the car insurance. The benefits of car insurance have become extremely obvious, as the use of car is no longer a rarity and as car accidents have become almost just as frequent. This is why certain types of car insurances have become compulsory. Therefore, the car insurance against accident offers you the benefit of repairing the damaged car on the expense of the insurance company. If you live in a big city, you might experience yourself how useful a car insurance is.

Another eloquent example is the home insurance, which covers the hazards affecting your home. Should your neighbor accidentally flood you – if you live in a flat – should an explosion take place, should there be natural calamities, the home insurance will cover these risks offering the benefit of not remaining homeless after such an event.

Also, one should not forget the health insurance, as an insurance system created in collaboration with the state which offers the benefit of having the hospital expenses covered, should one need medical care. The advantage of such an insurance is appreciated the most when it comes to serious illnesses or difficult surgical interventions that a person with common income wouldn’t have afforded. Just as frequent are the travel insurances, which cover the hospital expenses if something should happen to you abroad.

These are the most common insurances, but the list is very long and the benefits they offer are just as many. In the case of firms, the professional indemnity insurance may come as a must imposed by the client and not only, so as to protect the firm and the entire business.