Insurance can be defined as having a safeguard from the effects of loss or damage to goods or collateral. The party insured pays against the possibility of an adverse event, and the insurer agrees to pay out in the event of specified damage to the insured goods. It is a form of institutionalizing the ‘save for a rainy day’ philosophy. Having good insurance can be the difference between staying afloat and going under in the event of a serious emergency.
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