Quora Answer: What Situations Require Getting Insurance?

The following is my answer to a Quora question: “What situations require getting insurance?”

Insurance would be required for any situation where there is a risk that can be quantified, and you have a need to mitigate against that risk.  The primary purpose of inflation is liability protection.  It pays out upon the occurrence of the very situation you want to mitigate against.  As such, it covers a wide variety of situations, from your life, to your business to your activities.