What is insurance
Insurance is method by which you transfer a large uncertain loss to an insurance company for a small known loss. The small known loss is called a premium.

The large uncertain loss would be the loss of property which you own. This could be a house, it's contents, or a car by certain perils. Perils are the dangers to which your property is exposed, such as fire, theft, windstorm etc. We purchase homeowners and auto insurance to protect against those perils.

The ownership of property presents another risk less obvious. That is the use of the property. The use of your property requires you to use and maintain the property properly. Failure to do so may cause bodily injury or property damage to a third party. We call that Liability Insurance. The peril insured againt is neqligence. Examples would be someone triping on a broken or poorly maintained sidewalk, improper operation of your lawn mower or improper operation of your auto.
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