Perils are hazards that people attempt to protect themselves from by purchasing insurance policies. Perils can come in many different forms, and there are many different types of insurance to protect against them. If a person experiences damages as a result of perils that he or she is not covered for, then he or she will have to shoulder the full financial responsibility for the losses.
Examples of perils include earthquakes, tornadoes, accidents, injuries, fires, thefts, etc. Insurance for some types of perils, such as health related perils is mandatory to purchase by law. The Affordable Care Act made it mandatory for American citizens to have health insurance, or else face financial punishments. However, not all types of insurance are mandatory to own. Businesses also insure themselves against perils. Business perils can include some perils that individuals or families can face, such as earthquakes. However, they can also face perils that are unique to businesses, such as business interruption perils.