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The insured receives a contract , called the insurance coverage , which particulars the circumstances and circumstances underneath which the insurer will compensate the insured. The sum of money charged by the insurer to the policyholder for the protection set forth within the insurance policy is known as the premium. If the insured experiences a loss which is potentially covered by the insurance coverage, the insured submits a claim to the insurer for processing by a claims adjuster The insurer might hedge its personal threat by taking out reinsurance , whereby one other insurance coverage company agrees to carry some of the risks, especially if the primary insurer deems the danger too large for it to hold.