What is protection against loss or damage called?
Asked by: Liza Olson | Last update: September 7, 2025Score: 4.5/5 (16 votes)
What is protection against financial loss called?
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss.
What contract protects from loss or damage?
Indemnification refers to the broad concept of one party compensating another for losses, damages, or liabilities, usually due to third-party claims. It's an agreement that safeguards one party against the financial impacts of specific actions or events.
What is protection against loss?
Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.
Which term means security against loss?
The term 'Indemnity' literally means 'Security against loss'. Thus, an indemnity is an obligation by a person to provide compensation for a particular loss suffered by another person. Indemnity contract includes two parties namely; Indemnifier and Indemnity holder.
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What is the word for to protect from loss?
assure, care for, conserve, cover, cushion, defend, insulate, keep, look after, preserve, safeguard, save, secure, shelter, shield, support.
What is the difference between indemnity and damages?
Indemnity can be claimed for actions of a third party, whereas damages can only be claimed for actions of the parties to the contract. Indemnity covers loses even if the contract is not breached, whereas damages can only be claimed for loss arising out of breach of contract.
What is protection against risk of loss?
(i) Protection against risk. Life insurance provides protection to the family after the death of the insured. In case of premature death the insured sum of money is paid to the dependents of the insured.
What are the top 3 types of insurance?
Life insurance will help provide financially for your survivors. Health insurance protects you from catastrophic bills in case of a serious accident or illness. Long-term disability protects you from an unexpected loss of income. Auto insurance prevents you from bearing the financial burden of an expensive accident.
What is loss of field protection?
The loss-of-field protection is normally connected to trip the main generator breaker(s) and the field breaker and transfer unit auxiliaries. The field breaker is tripped to minimize damage to the rotor field in case the loss of field is due to a rotor field short circuit or a slip ring flashover.
What is the loss and damage agreement?
“Loss and damage” is a general term used in UN climate negotiations to refer to the consequences of climate change that go beyond what people can adapt to; for example, the loss of coastal heritage sites due to rising sea levels or the loss of homes and lives during extreme floods.
What is indemnification in simple terms?
Indemnification is a legal agreement by one party to hold another party blameless – not liable – for potential losses or damages. It is similar to a liability waiver but is usually more specific, applicable only to particular items, circumstances, or situations, or in regard to a particular contract.
What is a force majeure?
Force majeure is a clause included in contracts to remove liability for unforeseeable and unavoidable catastrophes that prevent participants from fulfilling obligations. These clauses generally cover natural disasters and catastrophes created by humans.
What is protection against a specific kind of loss called?
Peril - A specific risk or cause of loss covered by a property insurance policy, such as a fire, windstorm, flood, or theft. A named-peril policy covers the policyholder only for the risks named in the policy. An all-risk policy covers all causes of loss except those specifically excluded.
What is the strongest asset protection?
An asset protection trust (APT) is a complex financial planning tool designed to protect your assets from creditors. APTs offer the strongest protection you can find from creditors, lawsuits, or judgments against your estate. These vehicles are structured as either "domestic" or "foreign" asset protection trusts.
What is asset protection and loss prevention?
Loss Prevention (LP) primarily focuses on preventing inventory shrinkage due to shoplifting and employee theft. Asset Protection (AP) covers a broader set of strategies, safeguarding all assets of a business and addressing a wide range of risks, including theft, violence, and legal liability.
What are the four types of policies?
The four main types of public policy include regulatory policy, constituent policy, distributive policy, and redistributive policy.
What are the 7 basic principles of insurance?
In insurance, there are 7 basic principles that should be upheld, ie Insurable interest, Utmost good faith, proximate cause, indemnity, subrogation, contribution and loss of minimization.
What is the meaning of reinsurance?
Reinsurance is insurance for insurance companies. It's a way of transferring some of the financial risks that insurance companies assume when insuring cars, homes, people, and businesses to another company, the reinsurer.
What is protection against financial loss?
Insurance is a way to manage your financial risks (i.e., you pay someone else to share your risks). When you buy insurance, you purchase protection against unexpected financial losses. If something severe or unexpected occurs, the insurance company pays you or someone you choose.
What is the risk of loss or damage?
The responsibility that a carrier, borrower or user of property or goods takes on if there is a damage or loss to the object is the risk of loss. An insurance company can also agree to insure the object against the risk of loss.
What is the term used for protection against possible loss?
The act of insuring a risk against possible loss is known as insurance. Insurance is a contractual agreement between an insurance company and an individual or entity, in which the insurance company agrees to compensate the insured for any loss or damage that may occur in exchange for regular payments known as premiums.
What is indemnity for loss or damage?
Indemnity is a comprehensive form of insurance compensation for damage or loss. It amounts to a contractual agreement between two parties in which one party agrees to pay for potential losses or damage caused by another party.
What is indemnification for damage?
To indemnify, also known as indemnity or indemnification, means compensating a person for damages or losses they have incurred or will incur related to a specified accident, incident, or event.
What is liquidated damages or indemnity?
Indemnity is used to allocate responsibility for specific types of losses, including third-party claims. Liquidated Damages address quantifiable damages, often related to time-sensitive performance.