Glossary
A
Automobile Insurance: Automobile insurance, also referred to as auto or car insurance, is a type of insurance offered to motorists. Taking out auto insurance is an important step in ensuring the safety and security of yourself, your vehicle, and other drivers or pedestrians on the road. This type of policy helps protect you against any financial losses that may arise from a collision with another motorist or object, such as a tree, pole, or animal.
Agreed Price: The agreed price is the amount of money that a policyholder will pay in premiums each month to be insured. This amount is typically agreed upon when the individual initially purchases auto insurance. If a policyholder has an accident and files a claim, this agreed price may change depending on how much damage was done to their vehicle.
At-Fault: An at-fault accident occurs when a driver is determined to be responsible for causing an accident and, therefore, liable for any damages. This can occur because of negligence or carelessness on the part of the driver in question.
Automobile Theft: An automobile theft occurs when a motorist’s car is stolen. This can be due to several different factors, including the vehicle being parked in an unsecured area or not having proper security measures in place, such as anti-theft devices.
Arson: Arson is an illegal act where a person deliberately sets fire to a building, vehicle, or other structure. This type of crime can cause serious damage and harm to property owners and nearby individuals.
B
Business Insurance: Business insurance is a type of policy that protects a business from financial losses due to damage, injuries, or loss of property or equipment. It can help provide coverage for unforeseen events and protect the owner’s assets in the event that something happens, such as natural disasters, theft, or accidents.
Business Interruption: Business interruption is when a business is forced to close temporarily due to some type of event. This can include damage caused by a natural disaster, theft, or vandalism. Business interruption coverage helps protect against any financial losses that may be incurred as a result of this temporary closure and loss of profits.
Broker: A broker is an individual who acts as an intermediary between insurance buyers and sellers. They typically work with multiple insurers to find the best policies for their needs at the lowest price and can help clients compare different types of coverage to determine which may be right for them.
Burglary: Burglary is the act of breaking into a building with the intent to commit a crime, such as theft. This type of criminal activity can cause significant damage and loss of property, especially if important items are stolen.
Bodily Injury: Bodily injury is physical harm or injury inflicted on a person. This can include injuries caused by car accidents, slip and fall incidents, or negligent behaviour on the part of another individual.
C
Claim: A claim is a request for compensation that is made to an insurance company. This compensation can be provided either in the form of cash or as a refund on premiums paid by the insured person, depending on the type of policy they have and the details of their claim.
Collision: A collision occurs when two vehicles in motion crash into each other. This can be due to driver error, such as speeding or not paying attention to the road.
Coverage: Coverage is the extent of protection or indemnity that an insurance policy provides for a specific event, such as an accident.
Coverage Limits: Coverage limits refers to the maximum amount of coverage that is provided by a particular policy. This can vary depending on the type of policy and how much coverage the individual needs.
D
Deductible: A deductible is an amount that the policyholder needs to pay before the insurance company begins paying for a claim. This can vary depending on the type of policy and how much coverage an individual has.
E
Equestrian Insurance: Equestrian insurance is a type of policy that provides coverage for horse and equestrian-related businesses. This type of insurance can help protect against damage, loss, or injury to horses or property.
F
Farming Insurance: Farming insurance is a type of policy that provides coverage for agricultural businesses. This can include policies for small, family-run farms or larger commercial operations.
I
Insurance: Insurance is a type of policy that provides coverage for financial losses incurred from accidents, theft, or other types of incidents. It can help provide protection against the risk associated with these events and financially compensate individuals who suffer loss as a result.
Insurance Broker: An insurance broker is an individual who helps clients find the best plans and policies for their needs. They typically work with multiple insurers and providers in order to provide the greatest level of choice when finding the right coverage.
Insured: An insured is a person who has purchased an insurance policy. This can include individuals, businesses, and other types of organizations.
Insurer: An insurer is a company that provides insurance coverage. This can include insurance providers, brokers, and agents who work with insurers in order to find the right policies for their clients.
L
Liability: Liability is the legal responsibility an individual has for an accident, injury or another event that results in harm to another person. The degree of liability can be determined by the type and amount of coverage they have.
Limit: A limit is the maximum amount of coverage that will be provided for a specific type of event. This can vary depending on the type and amount of coverage an individual has.
Loss: Loss is the financial harm or damage caused to an individual due to an accident, theft, or another type of incident. This can include both material and non-material losses.
M
Motorcycle Insurance: Motorcycle insurance is a type of policy that provides coverage for motorcycles and other types of motor vehicles. This can include liability, theft, medical payments, collision damage or other types of coverages.
N
Negligence: Negligence is the responsibility an individual has for not taking sufficient care of another person or their property. This can include situations where individuals are careless, fail to take reasonable precautions or avoid liability by blaming someone else.
P
Physical Damage: Physical damage is the loss or harm that results when a vehicle is involved in a collision, fire, or other types of incident. This can include both material and non-material losses.
Policy: A policy is a contract between an insurer, agent, or broker and the insured. This typically outlines the type of coverage that will be provided for an individual in exchange for payment.
Policy Change: A policy change is an alteration to the terms or coverage of a policy. This can include changes to the amount, type, and duration of coverage an individual has.
Premium: A premium is a fee that is typically paid on a monthly or yearly basis for insurance policies. The amount of this fee can vary depending on the type of coverage.
Policy Holder: A policyholder is a person or organization that has a current insurance policy. This can include individuals, businesses, and other types of organizations.
Premium: A premium is a fee that is typically paid on a monthly or yearly basis for insurance policies. The amount of this fee can vary depending on the type of coverage.
Property Damage: Property damage is the loss or harm that results when an individual’s property is involved in a collision, fire, or another type of incident. This can include both material and non-material losses.
Proof of Loss: Proof of loss is documentation that provides evidence that an accident or other type of incident has occurred. This can include copies of police reports, medical records, and other types of information.
Q
Quote: A quote is a price an individual will pay for a specific insurance policy. This can be provided by an agent, broker, or insurer and can vary depending on a variety of factors, including age, location, type of coverage, and amount of coverage.
R
Rate: A rate is a price that an insurer charges to an individual for a specific type of insurance policy. A similar term, premium, can also be used to describe this amount.
Recreational Insurance: Recreational insurance is a type of policy that provides coverage for recreational vehicles such as ATVs, watercraft, and other types of vehicles.
Residential Insurance: Residential insurance is a type of policy that provides coverage for an individual’s house, other types of property, and personal belongings.
Reimbursement: Reimbursement is the compensation that an individual receives for the cost of an accident or other type of incident. This can include both material and non-material losses.
Risk: Risk is the likelihood of an event or incident occurring that can cause harm to individuals, businesses, or other types of organizations. This can include natural disasters and accidents, as well as theft and vandalism.
S
Settlement: A settlement is an agreed-upon amount paid to an individual in exchange for a specific insurance policy. This can be provided by an agent, broker, or insurer and can be different from the amount that is originally paid for a policy.
T
Theft: Theft is the illegal taking of an individual’s property by any means (e.g., force, fraud, or trickery). This can include both material and non-material losses.
Third Party: A third party is an entity that does not directly participate in an accident or other type of incident. This can include individuals, businesses, and other types of organizations.
Total Loss: A total loss is a point at which an accident or other type of incident causes damage that is too great to repair.
V
Vandalism: Vandalism is the malicious act of damaging an individual’s property for no other reason than to cause harm.
Vehicle Identification Number (VIN): A vehicle identification number is the unique serial number of a car.
W
Warranty: A warranty is a type of insurance that protects individuals from the cost of replacing or repairing their property if it is damaged. This standard can vary depending on the manufacturer, product, and other factors.