2 main types of legal risk: property/assets destroyed due to accident or someone else"s fault, held liable for some loss/injury caused to another person. Insurance policy = written evidence of the terms insurer and insured. 4 basic aspects of insurance contract: nature of risk covered, amount of insurance, duration of protection, amount of premium. Insurance broker is an independent business generally acting for the insured rather than insurer: distinction is often not clear. Insurance adjuster = expert in appraisal of property losses. 2 main classes of insurance: personal insurance & property insurance. Insure against your own losses, and against liability to others. Insurer usually liable for repairing damaged property or for the value of the destroyed property. Often has a deductible reduces moral hazard and makes insurance cheaper. Usually insure against: negligent acts and omissions, defective products, dangerous state of premises, breach of duty of care. Instead of having a variety of policies, can get comprehensive insurance.