A Glossary of Insurance Terms
Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of the daily operations of a specific industry, and the insurance business is no exception.
To help you understand the terms, acronyms, and phrases regularly used when purchasing a home or commercial insurances, Jones Deslauriers Insurance has created this handy reference guide. Here you’ll find valuable information allowing you to comprehend and communicate your insurance coverage needs effectively.
A person who investigates a loss and negotiates a settlement with the claimant on behalf of the company.
Coverage against loss or damage from all perils except those specifically excluded.
A form on which the prospective insured states facts requested by the insurance company. The insurance company decides whether or not to accept the risk, modify the coverage offered, or decline the risk.
Coverage on the risks associated with driving or owning an automobile. It can include collision, liability, comprehensive, medical, and uninsured motorist coverages.
The standard charge for a given type of risk.
Bodily Injury Liability.
Pays when an insured person is legally liable for bodily injury or death caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense if you are sued.
An independent person or firm who acts on behalf of the insured in placing business with the insurance company. The broker is responsible for the collection of premiums but has no authority to give coverage on the insurance company’s behalf without their specific agreement.
Insurance against business expenses and loss of income resulting from fire or other insured peril.
Termination of an insurance coverage during the policy period by the voluntary act of the insurance company or insured, affected by the mutual agreement.
Notice to an insurer that under the terms of a policy, a loss may be covered.
An optional coverage designed to provide protection for your vehicle when damage occurs as a result of a collision with another object. This coverage is optional and may be purchased in addition to the mandatory coverages required by law, and it is subject to a deductible.
Comprehensive insurance reimburses you for damage to your own car from causes other than collision or overturning. The comprehensive portion of your policy pays for loss due to perils like hail, flood, theft, fire, glass breakage, falling objects, windstorms, vandalism or malicious mischief, collision with a bird or an animal, etc.
The portion of a loss that you are required to pay before your insurance coverage responds. Deductibles can be used to reduce your physical damage premiums. For example, if you owned a policy with a $200 deductible and you suffered a covered loss totaling $1,000, you would pay the first $200 and the insurance company would pay the remaining $800. If the loss were only $200, you would pay the entire amount, and the insurance company would pay nothing.
An elective combination of coverages for the risks of owning a home. This can include losses due to fire, burglary, vandalism, earthquakes, and other perils.
The continuation of something that is about to expire. With an insurance policy, it is made either by the issuance of a new policy or renewal receipt or certificate, to take effect upon the expiration of the old policy.
If you’re looking for home and commercial insurance in Toronto, ON, reach out to the experts at Jones Deslauriers Insurance. Our plan is to get you the insurance coverage that meets your business regulation standards and protects you from the outcomes of unfortunate events. We work to understand your needs and expectations while also considering your budget, which allows us to find you the ideal insurance policy.