An insurance company is a business organization that provides financial protection against loss or harm in exchange for payment. It offers various types of insurance policies to individuals and organizations, such as auto, health, life, homeowners, and more, which cover specific risks like accidents, illnesses, damages, or losses. In the event of a covered incident, the insurance company will pay out the agreed-upon amount to help the policyholder recover from their loss or damage. The insurance company makes money by collecting premiums and investing them, while also managing risks through various strategies such as underwriting, reinsurance, and risk management.