Insurance is the form of protection in economics and law against the financial loss. The risk of potential loss is transferred from one subject to another.

There are several motives whether to decide for insurance or not. There are some criteria followed by insurance company before they decide to insure events.

They prefer to predict the financial outcome by insuring the larger number same or similar objects. In these cases an average premium can be easily calculated.

The insured have to be sure that the losses are accidental and not intentional. It is necessary to measure, identify and locate the losses. Very important is location and time where and when the loss happened. Preservation and protection the property mean minimization the losses.

Insurers must anticipate the losses and they have to be non-catastrophic. The insurance company cannot be put in financial risk. Catastrophic loss could put insurer in insolvency. To cover these losses there is system of Guarantee Funds for people in need.