Factors Determining the Risks of an Insurance Contract

The process of public production is interrupted or disrupted as a result of the destructive action of natural forces or as a result of various negative situations. The creation of such undesirable situations is a regular process and is connected with the contradictory nature of public production. The risk indicators should also be discussed. In order to overcome the existing negative situations, as well as to provide unconditional compensation for the caused damage, insurance certainly plays a crucial role. Insurance expresses what kind of economic relations act as economic categories. The essence of the insurance is that the damage will be distributed among many insurers, and their contribution will be relatively small for each of them. Moreover, Insurance is a set of economic relations between its participants, caused by the formation of a target insurance fund and its use in order to cover losses and pay insurance sums. Insurance risk lies in the basis of insurance. Keywords: Economic relationship, insurance amount, insurance payment, insurance rate.