High-risk insurance is a type of coverage designed for individuals or entities that present a greater likelihood of filing a claim. This can include drivers with a history of accidents, homeowners in areas prone to natural disasters, or businesses in hazardous industries. Because of the increased risk, premiums for high-risk insurance are typically higher than standard policies. Insurance companies assess risk based on various factors, such as driving records, credit scores, and property location. While high-risk insurance can be more expensive, it provides essential protection for those who may otherwise struggle to find coverage.