Coverages, also known as insurance policies, can offer many benefits and services to policyholders. A coverage is an agreement between a policyholder and an insurance company that promises to pay for certain types of losses or damage specified in the agreement. Coverages are essential to offset potential risk, whether it be financial or physical. When a policyholder purchases a coverage they are taking an important step to protect themselves, family and business. A coverage may provide medical coverage to pay for medical expenses when injuries occur, home coverage to protect a home, or auto coverage to protect a vehicle. Coverages are also essential to protect a business in case of a lawsuit or other losses. Coverages can also provide peace of mind in knowing that the policyholder is covered if something happens. Most policies include liability protection, which can provide coverage in case of an unintentional injury to another person or if property damage is caused by the policyholder. Many policies also include protection for natural disasters or other unforeseen events, such as a fire, flood, or theft. Coverages provide financial protection and peace of mind so that policyholders can focus on living life to the fullest without the stress and worry of potential losses.