What is the definition of Coverage?

Coverage is another term for insurance. The coverage of a policy outlines the kind of risk, as well as the amount, that the insurance company accepts when it issues an insurance policy. The coverage also states the period of time in which that risk is assumed by the insurance company.

For life insurance, the coverage would be the death of the insured person. For property insurance, the coverage will be the amount by which the insurance company is responsible for when the property is lost or damaged. For example, if John insured his home through a homeowners' insurance policy for $300,000, that is the coverage for that policy. The coverage will also specify what risks are covered (fire, flood, earthquakes, etc.). There are some risks that are excluded from the coverage, depending on the kind of policy you have and the insurance company that issued it.

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability