Natural Disasters Questions
The role of insurance in mitigating the financial impact of natural disasters is to provide financial protection and compensation to individuals, businesses, and governments affected by such events. Insurance policies cover various aspects, including property damage, loss of income, and liability, depending on the type of coverage. By transferring the financial risk to insurance companies, individuals and organizations can receive financial assistance to recover and rebuild after a natural disaster. This helps to alleviate the burden on individuals and communities, promoting resilience and facilitating the recovery process.