Insurance Malpractice Malpractice insurance is held by many professionals, such as doctors, dentists, and accountants. If a client of that professional suffers a financial injury because the professional committed malpractice, the insurer pays the client for some of the loss. Motor Vehicle Motor vehicle insurance is probably the most familiar type of insurance. Although motor vehicle insurance policies vary widely, they generally cover the owner or driver of the vehicle against the risk that the vehicle will be involved in an accident or damaged in a collision. Generally, property insurance pays if property is damaged, lost, or stolen.
Casualty insurance pays for injuries to persons or liability for such injuries.
Reinsurance Reinsurance is the practice of insurance companies to get other insurance companies to share in the risk. A smaller insurance company may pay a larger insurance company, a reinsurer, to insure the smaller insurer in case the smaller insurer actually has to pay an insured against a large risk. If the risk never happens, the smaller insurer and the reinsurer make money. If the risk does occur, the smaller insurer does not have to bear the entire cost of fulfilling the insurance agreement. The reinsurer pays the smaller insurer some of that cost.