Insurance is a contract between the insured and insurer for financial compensation by the insurer (insurance company) only on the happening of a loss /damage to the subject matter of insurance arising out of a coverd/insured peril Like Fire, Accident, Burglary etc. Therefore, insurance policy is operative only after happening of an event for-ex."claim- loss/damage, death, maturity" etc. Hence, it does not protect the insured against happening of any loss, actually insurance cannot restrict occurance of any loss/damage.
