Insured vs. Insurer

In insurance, the "insurer" is the company that provides coverage, agreeing to pay for certain losses or damages according to the policy's terms. The "insured" is the individual or entity that purchases the insurance, seeking protection against potential financial loss. Essentially, the insured pays premiums to the insurer in exchange for the promise that the insurer will help cover costs related to specific risks, such as accidents, theft, or health issues. This relationship is designed to provide financial security and peace of mind to the insured in uncertain situations.