Private insurance is a type of coverage provided by non-governmental companies. Individuals or businesses pay premiums to these companies in exchange for financial protection against specific risks, such as medical expenses, property damage, or liability claims. This insurance can be tailored to meet the unique needs of the policyholder. Unlike public insurance programs, which are funded by the government, private insurance relies on the premiums collected from policyholders. Examples of private insurance include health insurance, auto insurance, and homeowners insurance. These policies often come with various terms and conditions, including deductibles and coverage limits.