Insurance
Insurance is a side agreement in which a player pays another player a certain amount in exchange for a guarantee of winning a certain amount of money regardless of the outcome of the hand. In other contexts, it means a deal to split the pot.
The simple explanation
Insurance means that a player buys protection against losing a big pot. For example, someone who is all in and ahead may pay a small amount to a third party so that he receives money if he loses.
A closer look
The word can also mean an agreement among players to split or reduce a pot, roughly in proportion to their chances of winning, instead of playing out the remaining cards. Insurance is not part of the standard rules, and many rooms and tournaments do not allow it or require disclosure. Always follow the house rules and never make a private deal that the floor does not know about.
A practical example
Two players who are all in agree to split the pot in proportion to their chances instead of dealing the rest of the cards, as the room allows.
Full explanation
Insurance is a side agreement in which a player pays another player a certain amount in exchange for a guarantee of winning a certain amount of money regardless of the outcome of the hand. In other contexts, it means a deal to split the pot.
Insurance is a side agreement to guarantee money in a hand.
It can also mean a deal to split a pot.
It is not part of the standard rules.
Follow the house rules.