Insurance coverage refers to the protection provided by an insurance policy against financial loss. It helps individuals and businesses manage risks by covering costs associated with unexpected events, such as accidents, illnesses, or property damage. Different types of insurance, like health insurance, auto insurance, and homeowners insurance, offer varying levels of coverage based on the specific needs of the policyholder. When a covered event occurs, the insurance company pays out a claim to help cover the expenses. The amount of coverage and the terms of the policy depend on factors like the type of insurance, the premium paid, and any deductibles that apply. Understanding your coverage is essential for effective risk management.