Question

Why is insurance a necessity rather than a choice for a business?

Explain and write the functions of insurance​
answer in brief
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Answer 1

Answer:

Insurance is necessity rather than a choice for a business because life is full of uncertainties. ... Insurance does not end all these uncertainties but it minimizes the impact of such uncertainties so that there is a need of insurance.

So, insurance functions are; The system to spread the risk over several persons who are insured against the risk; The principle to share the loss of each member of the society based on the probability of loss to their risk; and. The method to provide security against losses to the insured.

Answer 2

Answer:

there is a need of the insurance