What is insurance?

Insurance is a contract between an insurer who in return for a premium, indemnifies an insured against losses resulting from a specified event.

The insurance contract will always be for a defined term or on the occurrence of the specified event.

For a business a number of different insurance covers may be required including the following:

  • automobile insurance
  • liability insurance
  • life insurance
  • shop insurance
  • whole life insurance
  • health insurance
  • accidental loss insurance

For further information see the Wikipedia definition.

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box and paste this insurance definition link to your site.

Return to the Dictionary

Insurance March 23rd, 2016Team

You May Also Like

Related pages

annuity perpetuitycommon size cash flow statementunrealized gain on income statementdouble declining depreciation formulabills payable meaningprepaid insurance on balance sheetdisbursement journalaccounting templates for small businessasset turnover calculationprepaid expenses journal entrypv of perpetuity calculatoraccounting sheets excelnpv formula excelstockholder equitygeneral ledger for dummiesbills payable formatmeasurement of information about a business in the monetary unitwarranty expense accountinghow to record accrued expensecalculate beginning inventoryaccrued expencein reimbursing the petty cash fundaccounts receivable write offdebtors accounting definitionbreakeven formulassales invoice double entryaccumulated depreciation exampletvc calculationdepreciation vs amortisationformula of contribution marginwhat does freight fob meanimprest bank account definitionpmt formula excelprofit percentage formula excelexcel future value functionmulti step income statement formatjournal and ledger examplesformula for cogsexamples of job costing and process costingaverage accounts receivable turnoverfixed asset reconciliation templatehow to post journal entries to t accountshow do you calculate contribution margin ratioinventories turnover daysestimating ending inventoryreturn on owners equitywhat gaap stands forpurchase return debit noteaccounts payable meaning in accountingdouble declining balance method equationstraight line method amortizationreceipt ledgerwhat does eom mean in accountingreorder level calculationaccumulated amortization journal entryexample of inventory turnovertreatment of deferred tax liability in cash flow statementaccounting cycle flow chartmargin vs markup formuladefinition of outstanding checksaging of receivables methodmarkup or marginprepaid revenue journal entrybank reconciliation exercise and answersinterest rate excel formulajournalizing transactions in accountingaccrued salariespmt equationinventory turnover ratio in days formulaunfavorable variance