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Insurance is a way of defending against economic losses. It is a type of risk management, mostly used to hedge against the risk of a loss that is contingent or uncertain. As an insurer, insurance provider, insurance carrier, or underwriter, an organization that provides insurance is recognized. As an insured person or as a policyholder, a person or organization that buys insurance is recognized.
A business plan is a structured written document containing a company's objectives, the strategies for achieving those objectives, and the timeline for achieving the objectives. The essence of the corporation, background information on the organization, the financial forecasts of the organization, and the strategies it plans to adopt to achieve the specified goals are also identified. An insurance agency plan serves as a decision-making tool. It provides specific details about the company or the team attempting to accomplish its objectives. The insurance transaction entails the insured assuming, in the form of payment to the insurer, a guaranteed and known reasonably small loss in return for the insurer's obligation to reimburse the insured in case of a covered loss. The loss may or may not be financial, but it must be financially reducible, and normally includes something in which the insured has an insurable interest generated by ownership, possession, or pre-existing relationship. The insured is awarded a contract, known as an insurance policy, specifying the terms and situations under which the insurer may pay the insured.
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