A policy is written to protect a company from those who break the rules, not from those who follow them and it is a written contract or certificate of insurance.
Insurance is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss.
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