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    The Benefits of Insurance

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    When is insurance beneficial? Is insurance ever not beneficial? Explain the answer

    © BrainMass Inc. brainmass.com October 10, 2019, 3:06 am ad1c9bdddf
    https://brainmass.com/business/external-auditing/the-benefits-of-insurance-407377

    Solution Preview

    Insurance is a way to transfer risk to another organization. For the price of the premium, another organization will bear the risk of a specified loss, up to the policy limits.

    Insurance is beneficial when the risk of loss is catastrophic to the business and so even one event would hurt the business in significant ways. Insurance is beneficial when the ...

    Solution Summary

    Your tutorial is 255 words and discusses the purpose of insurance, when insurance is beneficial and when it is not beneficial. A comment about auditor's use of insurance is made.

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