insurance

American  

[in-shoor-uhns, -shur-] / ɪnˈʃʊər əns, -ˈʃɜr- /

noun

1. the act, system, or business of insuring property, life, one's person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved.

2. coverage by contract in which one party agrees to indemnify or reimburse another for loss that occurs under the terms of the contract.

3. the contract itself, set forth in a written or printed agreement or policy.

4. the amount for which anything is insured.

5. an insurance premium.

6. any means of guaranteeing against loss or harm.

   Taking vitamin C is viewed as an insurance against catching colds.

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adjective

1. of or relating to a score that increases a team's lead and insures that the lead will be held if the opposing team should score once more.

   The home run gave the team an insurance run, making the score 7-5.

insurance British  

/ ɪnˈʃʊərəns, -ˈʃɔː- /

noun

1. 1. the act, system, or business of providing financial protection for property, life, health, etc, against specified contingencies, such as death, loss, or damage, and involving payment of regular premiums in return for a policy guaranteeing such protection

   2. the state of having such protection

   3. Also called: insurance policy.  the policy providing such protection

   4. the pecuniary amount of such protection

   5. the premium payable in return for such protection

   6. ( as modifier )

      insurance agent

      insurance broker

      insurance company

2. a means of protecting or safeguarding against risk or injury

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Other Word Forms

• noninsurance noun
• preinsurance noun
• proinsurance adjective

Etymology

Origin of insurance

First recorded in 1545–55; insure + -ance

Explanation

Insurance is a contract where you pay a little money at a time so you can be compensated later, especially in the case of a disaster. Many people consider insurance to be making a kind of bet that bad things will happen: that's a good bet to make, because nobody is lucky forever. Legally, you need car insurance to drive. Without medical insurance, a serious illness could leave you broke. Life insurance is important so your family gets support when you die. House or apartment insurance will help if you have a fire. Insurance agents sell insurance policies, and they always have lots of customers.

Example Sentences

Another member, who is also in their mid-50s, said: “I’m figuring I’d better have $40,000 available annually: $25,000 for couples’ insurance and $15,000 for out-of-pocket costs.

From MarketWatch • Apr. 28, 2026

Other signs of weakness in China’s labor market include the growing gig-work economy and an uptick in spending on unemployment insurance, according to Xiangrong Yu, Citigroup’s chief China economist.

From The Wall Street Journal • Apr. 28, 2026

Meanwhile, some insurers are requiring ships to use an Iran-approved route through the Strait of Hormuz as a condition of getting war-risk coverage, according to insurance broker Marsh.

From Barron's • Apr. 28, 2026

The four-week trip to Florida was booked for the end of October and the travel insurance originally cost £232 to cover the five family members, but now Sienna's cover alone is £5,083.

From BBC • Apr. 28, 2026

He’d bought insurance on a lot of truly crappy subprime mortgage bonds, created from loans made in 2005, but they were his credit default swaps.

From "The Big Short" by Michael Lewis

Related Words

• allowance
• coverage
• guarantee