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The insured receives a contract , referred to as the insurance policy , which details the situations and circumstances beneath which the insurer will compensate the insured. The amount of money charged by the insurer to the policyholder for the protection set forth within the insurance coverage coverage is named the premium. If the insured experiences a loss which is potentially covered by the insurance coverage policy, the insured submits a claim to the insurer for processing by a claims adjuster The insurer might hedge its own danger by taking out reinsurance , whereby one other insurance coverage firm agrees to carry a few of the risks, especially if the primary insurer deems the risk too large for it to carry.