insurance

Vocabulary Word

Definition

Insurance is a financial plan where you give money to a company over time, called a premium, so that if something goes wrong, like a car accident or house fire, the company will pay for your losses.

Examples in Different Contexts

Businesses often purchase liability insurance to protect against claims from injuries or damages to people or property. A risk manager might explain, 'Our liability insurance ensures that we are covered in case of any accidents on our premises.'

Practice Scenarios

Automotive

Scenario:

For the new fleet acquisition, proper insurance coverage is a must. Any particular policies we should consider?

Response:

I suggest we go for comprehensive car insurance that covers accidental damage, theft, and third-party liability.

Business

Scenario:

Our company needs to prioritize financial protection against unforeseen incidents. Have we considered all types of policies available?

Response:

Yes, we've secured our business with both liability and property insurance to cover potential risks.