An agreement by the insurer to compensate the insured for losses suffered is?

An agreement by the insurer to compensate the insured for losses suffered is called "indemnity." Indemnity is a legal contract between the insurance company and the insured, where the insurer agrees to compensate the policyholder for losses or damages that the policyholder may experience due to a specific event, such as a car accident, fire, or theft. The amount of indemnity paid by the insurance company depends on the terms and conditions of the insurance policy and the extent of the losses incurred by the policyholder.