While you're learning about your coverage, you may come across a few of these common terms:

  • Quote:
    This document highlights the coverages and pricing being offered to the client.

  • Binder:
    This document confirms the coverages and pricing purchased by the client. It basically serves as a placeholder until the policy is issued.

  • Policy:
    This document includes all coverage details purchased by the client.

  • Endorsement:
    This is a document that adds or removes coverage to the base policy form.

  • Limit:
    This is how much coverage the policy provides for any given coverage.

  • Deductible/Retention:
    This is the client's out of pocket responsibility before the insurance limit.

  • Policy Term:
    The length of the policy. Typically 1 year.

  • Effective Date:
    The date the coverage starts.

  • Expiration Date:
    The date the coverage ends.

  • Loss:
    Injury or damage sustained by an Insured.

  • Claim:
    A formal request to an insurance company for coverage or compensation for a covered loss or policy event. The insurance company validates the claim and, once approved, issues payment to the insured or an approved interested party on behalf of the insured.

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