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The Benefits of Insurance

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

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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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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 provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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