1. Provides Security

Provides Security: 

Insurance gives security to both individuals and businessmen. There are many risk which are covered by parchasing insurance. For example, the building of a factory which is insured suddenly catches fire. The insurance company will idemnify for the actual loss or damage to property caused by fire. The financial loss of the policy-holder is thus offset in full or in part by the insurance company. The insurance company will pay the full amount of the loss of goods to the trader. Insurance thus provides safety against economic difficulties to the families and businessmen.