The Best Insurance is an Insurance Broker

Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Accidents Benefits

A type of coverage that is available to every insured that is injured in an automobile accident regardless of who caused the accident. Because of this, it is considered a “no-fault” insurance coverage.

All Risk Coverage

A type of coverage that covers all losses except those specially excluded.

B

Basic/Named Perils Policy

A policy that provides coverage only for the perils named or listed in the policy.

Broad policy

A general insurance industry term referring to either a homeowner’s policy or a commercial building policy. A “broad form” homeowner’s policy is usually an all risk policy on the building and named perils on the contents. A commercial building “broad form” provides all risk coverage on the building structure.

Building Insurance

The amount of insurance coverage on a building. It may be a residential or a commercial building.

C

Contents Insurance

The amount of coverage on contents in the house or in the commercial building.

D

Distribution Network

An insurance industry term to explain how insurance companies sell their insurance products. Insurance products are distributed by independent insurance brokers through numerous insurance companies, or by agents on behalf of one company.

L

Liability Loss

Loss or damage for which an insured is legally responsible.

P

Personnel Loss

Loss to a business of their employees.

Policy Expiration Date

The end of the term of an insurance policy. It is the date that the policy is to expire.

Proof of Insurance (Pink slip)

An inter-provincial motor vehicle liability certificate to show proof that an insurance policy is in force.

Property and Casualty Insurance

All lines of insurance excluding life insurance.

Property loss

Loss or damage to a property from an insured peril.

R

Risk Drivers

A criteria set out by the insurance company on an individual person(s) and is based on their probability of a loss.

Risk Management Alternatives

Making decisions that will miminize the losses on a risk. For example, increasing the deductible or changing a procedure that will help reduce a claim.

Risk exposure

The amount of loss in a claim that could possibly eventually occur. It could also refer to a specific peril.

T

Third Party Claim/Third Party Liability

A claim for loss and damage against a person who may demand payment against the insured.

V

VIN (Vehicle Identification number)

The 17 digit serial number of an automobile which can identify the automobile.