Who buys insurance?

The answer to this question is simple. Almost everyone buys insurance. Insurance protects personal assets (home, auto, individual life and health). It also protects business property, employees and the risk of third party suits against your business.

In addition, most states require insurance for automobiles and for employees (workers’ compensation).

Insurance in its many forms touches the life of virtually every person. It provides financial protection for homeowners, renters, car owners, business owners and their employees. It also provides protection for people who suffer personal injuries or property damage at the hands of others. Its value to society is enormous. However, many people don’t fully understand how insurance works or the value associated with insurance.


Insurance is fundamental in our day-to-day lives. Insurance is essentially a system by which risk is transferred by a person, business or organization to an insurance company which reimburses an insured for covered losses. Insurance also provides for the sharing of the cost of losses among all insureds.

By transferring risks to insurance companies, insureds exchange the possibility of large losses with potentially devastating financial effects for smaller, certain and manageable costs (insurance premiums).