Insurance, like any other financial industry, has a small learning curve in terms of vocabulary. It is important for you to familiarize with at least the most common terms, so you know exactly what policy you’re paying for. We have created a small guide on insurance key terms so you are not looking at your agent like they are speaking another language when explaining your policy.
Claim: A formal process in which the holder of the policy, requests compensation, or whatever is included in that policy.
Adjuster: An individual representing the insurance company in charge of handling processes, document collection, and other tasks that follow an insurance claim.
Carrier: An insurance company which “carries” the insurance. Just as a store would carry running shoes from a specific brand.
Deductible: The amount the insured must pay in a loss before any payment is due from the company.
Premium: This is a periodic payment you will pay the insurance company in order to have your policy valid.
Worker’s Compensation: This definition is a two way street. A schedule of benefits payable to an employee for injury, disability, dismemberment, or death as a result of occupational hazard.
General Liability: “CGL” now means commercial general liability. These are forms which have replaced the earlier “comprehensive” general liability forms. The latest forms include all sublines, provide very broad coverage.
There are of course, way more detailed terms in insurance. These insurance key terms are terms in which our customers usually have the most questions over. Knowing these definitions is important, however, always ask your agent to go into detail if you are still not 100% sure.
