Legal Definitions - insurer

An insurer is a company that provides insurance coverage to individuals or organizations. When someone buys an insurance policy, they are essentially entering into a contract with the insurer. The insurer promises to pay compensation if the insured experiences a loss that is covered by the policy.

For example, let's say John buys a car insurance policy from XYZ Insurance Company. If John gets into a car accident and his car is damaged, he can file a claim with XYZ Insurance Company. If the claim is approved, the insurer will pay for the cost of repairing or replacing John's car, up to the limit specified in the policy.

The insurer is responsible for assessing the risk associated with providing insurance coverage and setting the premiums that policyholders must pay. The insurer also determines the terms and conditions of the policy, including what types of losses are covered and how much compensation will be paid out.

Overall, the insurer plays a crucial role in the insurance industry by providing financial protection to individuals and organizations against unexpected losses.