The risk of loss is distributed by insurers, by two risk-spreading techniques. And by reinsurance, which is the transfer by an insurer of a part of the group risk it has assumed to another insurance company. An insured person must have an insurable interest in the property or the life that is being insured. An insurable interest is a relationship with a person or thing that supports the issuance of an insurance policy. If a person can derive an advantage from something's preservation, or will suffer a loss from its destruction then there is an insurable interest.
Insurance protects a business or family from almost any type of liability.
Examples of some types of insurance are property, life, accident and health, disability, and worker's compensation just to name a few. Insurance Companies Three types of insurance companies are stock, mutual, and mixed companies. Stock companies are organized by subscribers who make an initial capital investment in the corporation, which is then managed by a board of directors. Mutual companies are a cooperative enterprise whose members maintain a dual relationship with the company. Mixed companies have characteristics of both mutual and stock companies.