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The insured receives a contract , known as the insurance coverage coverage , which details the circumstances and circumstances below which the insurer will compensate the insured. The amount of money charged by the insurer to the policyholder for the protection set forth in the insurance coverage coverage is called the premium. If the insured experiences a loss which is doubtlessly coated by the insurance coverage, the insured submits a declare to the insurer for processing by a claims adjuster The insurer might hedge its personal danger by taking out reinsurance , whereby one other insurance firm agrees to carry a few of the risks, particularly if the primary insurer deems the risk too large for it to hold.