Insurance provides financial protection against potential losses or risks. The process involves transferring risk from an individual or entity to an insurance company in exchange for the payment of premiums. There are several types of insurance based on different risk areas. The most common ones are life and health insurance. Aside from life, non-life insurance policies, such as property and casualty insurance, cover homeowners and auto insurance. Other types include liability insurance, business insurance, and others tailored for specific industries or risks.