21+ Useful Insurance Terms You Should Know


21+ Useful Insurance Terms You Should Know

21+ Useful Insurance Terms You Should Know

Auto Insurance, Health Insurance, Insurance, Life Insurance, Uncategorized

INSURED – A person or a corporation that contracts for an insurance policy that indemnifies (protects) against damage or property damage or, in the case of a liability policy, protects it against a claim from a third party.

NAMED INSURED – Any person, firm, or corporation designated explicitly by name as an insured (s) in a policy that differs from others, however anonymous, are protected under certain circumstances. For example, a typical application of this latter principle is in auto liability policies, in which coverage is extended to other drivers using the car with the permission of the named insured, by definition of “insured.” Other parties may also be provided protection of the insurance policy in the policy or endorsement under the name “Additional Insured.”

ADDITIONAL INSURED – An individual or entity that is not automatically included as an insured under another’s policy, but for whom a designated insurance policy provides a certain degree of protection. Support is usually required to effect additional insured status. A named insured may wish to protect the other party due to a close relationship with that party to provide additional protected status to others (e.g., a member or members of the insured club) or to comply with a contracted contract to which the designated An insurer is required. To do this (for example, owners of property taken by customers or designated insurance).

CO-INSURANCE – An insurance policy or risk-sharing between two or more insurance companies. It usually pays each insurer directly to ensure its respective portion of the loss. Co-insurance may also be the arrangement by which the insured agrees to carry an amount of insurance equal to a percentage of the total value of the insured property, considering the reduced rate. An example is if you have guaranteed protection up to 80% or 90% of the value of your building and materials, whatever the case may be. If you do not, the company only pays the claim in proportion to the amount of coverage you bear.

Premium – The amount paid by the insured for insurance coverage.

DEDUCTIBLE – The sum insured before the benefit is paid by the insurer, for which the insured is responsible; Similar to a self-insured retention (SIR). The liability of the insurer starts when the deductible ends.

SELF INSURED RETENTION – performs the same function as a deductible, but is responsible for all legal fees insured concerning the amount of SIR.

POLICY LIMIT – The maximum monetary amount an insurance company is responsible for the insured under its policy of insurance.

Firstly insurance – insurance that applies to insured property or coverage for a person. Traditionally it covers the loss of insured property due to the reasons covered in the policy. This is property insurance coverage. An example of first-party insurance is builders risk insurance, which is insurance against damage to rigs or ships during their construction. This includes only the insurance company and the owner and contractor of the platform who has a financial interest in the platform.

Third-Party Insurance – Liability insurance covers the insured’s negligent acts against the claims of a third party (i.e., not the insured or the insurance company – the third party to the insurance policy). An example of this insurance would be Ship Repair Legal Liability (SRL) – which provides protection for contractors who repair or alter a customer’s ship at their shipyard, other locations, or at sea; Covers the insured, while the client’s assets are under the “care, custody and control” of the insured. A commercial general liability policy is required for other coverage, such as slip-and-fall situations.

INSURABLE INTEREST – An interest in something that is the subject of an insurance policy or a legal relationship to an issue that will trigger a specific event that may cause monetary harm to the insured. Example of insurable interest – the ownership of a piece of property or an interest in that piece of property, e.g., the shipyard that built a rig or vessel. (See builders above)

Liability Insurance – Insurance coverage that protects an insured against claims made by third parties for damage to their property or person. These losses usually result from the insured’s negligence. In marine construction, this policy is referred to as the MGL, Marine General Liability Policy. In non-maritime situations, the system is applied to as CGL, Commercial General Liability Policy. Insurance policies can be divided into two broad categories:

First-party insurance includes the property of the person purchasing the insurance policy. For example, a homeowner’s policy promising to pay for the damage caused to the homeowner’s house by fire is the policy of the first party. Liability insurance, sometimes called third party insurance, covers the policy holder’s liability to others. For example, a homeowner’s policy may cover liability if a person travels and falls on the property of the homeowner. Sometimes a system, such as in these examples, may have both first and third party coverage.

Liability insurance offers two distinct benefits. First, the policy will cover losses incurred by third parties. Sometimes it is called providing “compensation” for a loss. Second, most liability policies contain a duty to defend. The duty to defend requires the insurance company to support the claim from lawyers, expert witnesses, and third parties for court expenses. These costs can sometimes be substantial when facing a liability claim and should not be ignored.

UMBRELLA Liability Coverage – This type of liability insurance provides additional liability protection. Your business needs this coverage for the following three reasons:
It provides additional coverage on the “underlying” liability insurance you take.

It provides coverage for all other liability risks, except for some expressly excluded exposures. This is subject to a significant deduction of approximately $ 10,000 to $ 25,000.
It provides automatic replacement coverage for underlying policies that have reduced or eliminated losses.

NEGLIGENCE – Failure to use proper care. Doing something that a reasonably sensible person would not do, or a failure to do something that a reasonably prudent person would do according to circumstances. Negligence is a ‘legal cause’ of damage. If it produces or contributes sufficiently to create such damage directly and in a natural and continuous sequence, it can reasonably be said that if negligence There would not have been a loss, injury, or damage.

GROSS NEGLIGENCE – Negligence and reckless disregard for the safety or life of others, which is so great that it appears to be an almost conscious violation of other people’s rights to protection. This is more than simple negligence, but it is just a shortcoming of being singular misconduct. If gross negligence is found by a trio of facts (judge or jury), it may revive

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