Insurance is a financial arrangement designed to protect individuals, businesses, and organizations against potential losses or risks. It involves transferring the risk of financial loss from an individual or entity to an insurance company in exchange for payment of a premium. Insurance policies typically provide coverage for specific risks, such as property damage, liability, health expenses, or loss of income. In the event of an insured loss or event, the insurance company compensates the policyholder or beneficiary according to the terms of the policy. Insurance enables individuals and businesses to manage uncertainties and mitigate financial risks, providing peace of mind and financial security. It plays a vital role in safeguarding assets, promoting economic stability, and facilitating recovery from unexpected events or disasters.