Insure

Insure is a verb that means to arrange or obtain financial protection against loss through an insurance policy. In common usage, to insure something is to obtain coverage from an insurer; in contrast, ensure means to make certain, and assure means to promise or reassure. The word insure is often used in the context of protecting property, lives, or health against specific risks.

Insurance functions as a risk management mechanism. An insurer collects premiums from policyholders and pools the funds to pay for losses defined in the policies. Key elements of an insurance contract include the premium, deductible, coverage limits, exclusions, and the claims process. Underwriting evaluates risk and sets premiums; claims processing determines whether and how losses are paid. Reinsurance is the practice by which insurers transfer portions of their risk to other insurers to limit exposure.

Common lines of insurance include life, health, auto, property and casualty (home or business), liability, travel, and specialty insurance. Policies may indemnify the insured, restoring them to their financial position before a loss, subject to terms and limits. Coverage can be comprehensive or only cover specific perils, and policies can include riders or endorsements that modify standard terms.

Regulation and market structure vary by jurisdiction but generally aim to protect consumers, ensure solvency, and maintain market integrity. Insurers are subject to licensing, capital requirements, disclosure rules, and consumer protections. The insurance industry has evolved from early marine and fire risk arrangements to modern multinational markets, with extensive use of data, model risk assessment, and regulatory oversight.

Common considerations for insured individuals include comparing policy terms, understanding exclusions, and assessing whether coverage matches potential risks and financial needs.