Fundamental insurance concept

The word peril, loss and hazard terms sound synonymously but the words used in the insurance are quite different and those words should be distinguished carefully. As the insurance is the unseen and unintended loss to the owner and for the organization. For instance, if the price of the gadgets decreases by the value of market or be by its ages. Although the decreases surely lost made the loss, but the loss in the term of insurance is not called as loss. Additionally for instance, if destruction of the same gadgets is done through the fire then it is unintended and unseen and so we can consider it as loss.

Insurance fundamental

Common loss exposure is listed below;

·         Personal

·          Liability and

·         Property

·         Personal Losses

The injury, illness, and premature death are the example of it.

·         liability losses

 The property which we cannot become legally responsible to pay back for injuries or other damages property. For instance, you have a pet and that pet harm others. For eg if you have a dog at home and that bites children, then probably you should be liable for the child heath. Additionally if you have a bike and you accidently have a accident and held you as a fault, then probably you may have to liable to pay for the damages you have caused. 

·         property losses

 The property loss by the unintended accidents like, fire, vehicle accident, storm damages that brought to the business are mentioned as property loss. It involves the destruction of commercial or let it be personal.