Every industry has its own terminologies. Some that sound so complicated for any person to understand. And when it comes to insurance you are likely to hear industry terms thrown around with no idea what they actually mean. Business Today now samples some of the interesting yet so difficult insurance terms and gives you their full meanings. That way, the next time you hear them; you’ll know exactly is being talked about.
1.Liability: This term refers to legally enforceable obligations. Liability insurance policies help pay for damages and services required due to the responsibility or negligence of the insured party.
2.Coverage: The scope of protection provided by an insurance policy including properties, locations and individuals insured, as well as limits of such protection.
3.Risk: This broad term refers to the probability of loss.
4.Standard Coverage: This refers to the basic coverage required by law. You are most likely to hear this term used in reference to auto insurance.
5.Deductible: A deductible is the amount of money a consumer is responsible to pay before insurance kicks in following a covered event.
6.Limit: A limit is the total amount of coverage offered by a policy.
7.Premium: A premium is the amount you pay for your insurance policy.
8.Agent: An agent is an individual who sells insurance policies and services to other people. Direct agents represent a single insurance carrier.