The term "insured" refers to a person or entity that has purchased insurance, which is a contract between two parties where one agrees to compensate the other for losses incurred as a result of certain specified risks. In this context, being "insured" means having protection against financial loss due to unforeseen events such as accidents, natural disasters or illnesses, through the payment of premiums to an insurance company. When someone is "insured," it means that they have a policy in place that will cover them for specific risks and provide financial support if something unexpected happens.