TRUE, companies purchase insurance to reduce the impact of threats.
Insurance is protection against financial loss. It is a form of risk management used primarily to hedge the risk of potential or uncertain losses. Companies that provide insurance are known as insurers, insurers, insurers, or underwriters.
Insurance is a way of managing risk. When you buy insurance, you are buying protection against unexpected financial losses. If something bad happens to you, the insurance company will pay you, or someone you choose. If you do not have insurance and an accident occurs, you can pay all related costs.
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