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“Insurance” is the provision of a financial indemnity in the event of loss or damage. Ensuring that there is adequate insurance for an enterprise is one of the most important management functions.
Insurance may be arranged using the services of an insurance broker, or by direct negotiation with the insurer.
The insured is obliged to tell the insurer of any matter that might reasonably be expected to affect the risk that is to be the subject of the contract of insurance. Failure to disclose any relevant matter may entitle the insurer to decline the risk.
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