IntroductionInsurance is a very important part of modern life and business. In this article, I will discuss the basic concepts of insurance, disaster and accident liability insurance policies, factors for selecting an insurance company and insurance policies, as well as than the difference between workers' compensation and liability insurance. agreement between the insurer and the client. The customer, who may be an individual, business or other entity, agrees to pay premiums as required, in exchange for monetary protection from the insurer for any possible substantial losses. Customers generally purchase insurance, not to cover trivial incidents in life or business, but to cover potential large losses that could cause them financial hardship. The premiums of all the insurance company's customers are grouped together. Insurance applies statistical analysis to determine the likelihood that a particular event could occur to one of its customers. From this analysis, they can determine the premiums that must be collected and the claims that must be paid to maintain the financial profitability of the insurance company. There are many types of insurance, including life insurance, property and casualty insurance, auto insurance, health insurance, and disability insurance. Each is very specific as to which losses will then be covered and reimbursed (Pareto, nd). “Claims Made” and “Event” Liability With “claims made” policies, claims must be submitted during the insurance coverage period and the event must have occurred after the retroactive date. The retroactivity date is generally set to the start date of the new contract to avoid having to cover past events. If you are canceling an insurance policy following a claim or switching to an accident insurance policy, this is ...... in the middle of a document ...... to About workplace accident insurance. Retrieved August 16, 2010 from http://www.cutcomp.com/about.htmLegal Law Help (nd). Workers' Compensation Act. Retrieved August 16, 2010 from http://www.legallawhelp.com/legal_law_channels/workers_compensation/Nonprofit Risk Management Center. (nd). Who is afraid of the statements made? Retrieved August 14, 2010 from http://www.nonprofitrisk.org/library/articles/insurance05002003.shtmlPareto, C. (nd). Introduction to insurance. Investopedia. Retrieved August 14, 2010 from http://www.investopedia.com/university/insurance/default.aspRotarius, T. and Liberman, A. (September 2000). Professional Liability Insurance for Healthcare Organizations – Several Important Considerations. The Health Care Manager 19 (1), 59. Retrieved August 1, 2010 from http://proquest.umi.com/pqdweb?did=59216125&sid=1&Fmt=2&clientId=29440&RQT=309&VName=PQD