Insurance

Created by LawDude on August 5, 2009

Definition

A form of side bet made between poker players, where a player who is in a strong position will agree to bet a portion of his expected winnings against the possibility that his or opponent will hit his or her draw.

Example

Players 1 and 2 are all-in, player 1 has a flush on the turn and player 2 has a set. Player 1 might purchase insurance (if it is offered by another player), betting some of his expected winnings on the possibility of player 2 hitting his full house. This will protect player 1 against the possibility of the full house hitting and player 1 losing the entire pot.

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