What is the difference between an insurance policy and a contract?

An insurance policy and a contract are two different legal documents. An insurance policy is a document that is provided by an insurance company that states the coverage that is provided to an individual or business in the event of a loss or other covered incident. The policy outlines the type of loss that is covered and the amount of coverage that is provided. A contract, on the other hand, is an agreement between two or more parties to do or refrain from doing certain things for the purpose of establishing a legally binding relationship. Contracts can be for a variety of purposes, including employment, sales, leases, and more. The main difference between an insurance policy and a contract is that an insurance policy provides protection against particular risks, while a contract establishes obligations between parties. An insurance policy outlines what type of losses the policyholder is covered for and the amount of coverage that is available. A contract, on the other hand, is an agreement between two parties that establishes certain obligations such as payment for services or delivery of goods.

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What is the difference between an insurance policy and a contract?

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