Commercial Insurance Dictionary: Terms and Definitions

Find Clarity in the Insurance Dictionary Here

Insurance is often daunting because the sheer complexity with respect to its implementation. It is not meant to write the law but to follow it.

Because of the sheer volume of terms and definitions sometimes needed to really understand what’s in your policy and what’s really covered, it can be even more confusing.

Yet everyone needs insurance – whether it’s to protect your homes or automobiles or, of course, your business. At Excel Insurance Group, we believe that it’s important for you to understand what these insurance definitions really mean so that you can better understand the types of coverage you need, why you have it, and what protection you’re really getting from your policies. This insurance dictionary is meant to be a start and, of course, your broker is always available to answer any questions you have.

If you can’t find the term you’re looking for, let us know and we’ll be happy to get you the answer and make sure it’s added to this glossary of insurance definitions.

Do you need immediate answers to questions you have? For quick assistance, Call 1 (780) 732-7129.

get free insurance help with our insurance glossary an dictionary definitions

Search Commercial Insurance Definitions & Terms in the Insurance Dictionary Below

Displaying 1 - 5 of 5

Bodily Injury

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Insurance Term:

Bodily Injury

Insurance Definition:

Term used in Auto and Casualty policies meaning physical injury, including sickness, disease, mental injury, shock or death.

Example or Extra Clarification:

If someone is hurt or dies in an auto accident, for instance, this would constitute bodily injury.

Claim

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Insurance Term:

Claim

Insurance Definition:

Notice to an insurer that under the terms of a policy, a loss may be covered.

Example or Extra Clarification:

If you have an car insurance policy with us and you have an accident, you would contact us to tell us you have a claim so that we could help you get a solution.

A claim is really when you let the insurer know that something has happened and you need to be compensated. When you deal with us at Excel Insurance Group, you can let us know and we'll help you through the process.

Deductible

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Insurance Term:

Deductible

Insurance Definition:

The amount of money that the policy holder must contribute in the event of a claim before the insurance coverage responds. Deductibles can be used to reduce your physical damage premiums.

Example or Extra Clarification:

Let's pretend that someone hit your car in a parking lot. This accident caused you $2000 in damages. If your car insurance policy indicates that you have a $500 deductible, you would have to pay the first $500 of the $2000 claim and then you would receive the balance from your insurance company, or $1500 ($2000 less your $500 deductible).

Exposure

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Insurance Term:

Exposure

Insurance Definition:

Degree of hazard threatening a risk because of external or internal physical conditions.

Example or Extra Clarification:

What we are really getting at here is the amount of risk associated to what you're protecting with your insurance. It's almost good to think of exposure in terms of the likelihood that something will happen to the person or thing you are insuring. The more likely the potential for risk, the higher the exposure. The less likely, the lower the exposure.

Premium

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Insurance Term:

Premium

Insurance Definition:

The amount of money an insurance company charges for insurance coverage.

Example or Extra Clarification:

In other words, your premium is the amount, in dollars, that the insurance company charges for your insurance coverage.

Still a little confused? Don’t worry. There is more to insurance than insurance definitions.

Insurance definitions are often difficult to understand. Even if we try to include them all, there are simply too many working parts, too many changes. Still, we strive to keep this insurance directory up to date. The industry overall is often difficult to understand. It’s one of the reasons that certified insurance professionals are actually licenced insurance brokers. Our insurance agents are highly skilled and trained to understand the complexities of the insurance world and make it easy for you to understand.

Without any obligation, you can feel free to contact us for explanations and help – even if you are not our client. We are always happy to help de-mystify the insurance jargon and find ways to make sure that you out there, make sense of your insurance.

Most importantly, as you understand more and more, you’ll have the opportunity to speak with an insurance broker that works for you and not for the insurance companies. So don’t be shy! Reach out and talk to one of our team because they are always excited to be able to share their stories about how they have helped others – just like you -with the challenges and difficulties experienced through finding the right policy and coverages, or even through the claims process.

Get some help with your commercial insurance now >