Insurance is defined as the equitable transfer of the risk of a loss , from one entity to another , in exchange for a premium , and can be thought of as a guaranteed and known small loss to prevent a large , possibly devastating loss .

Insurance is defined as the equitable transfer of the risk of a loss that could happen , from one entity to another , in exchange for a premium -LRB- normally money paid -RRB- and duty of care -LRB- being careful -RRB- .
