Glossary
Adjustor: A person who acts on behalf of an insurance company to evaluate and settle claims.
Agent: Employees of a single insurance company that only offer that company’s insurance products.
Broker: Independent sales representatives for a selected number of different insurance companies that are paid commissions by the companies. Brokers can approach an insurance company that best meets your organization’s needs.
Claim: Request for compensation stemming from an incident that has caused damage to your property or other people’s property, or injury to other people.
Claims-made policies: Policies that provide coverage for claims submitted when the policy is active, even if the incident leading to the claim was before it was in place.
Co-insurance: A clause included in most property insurance policies that sets out the percentage of your property’s value you have to insure, usually 90%.
Deductible: The amount your organization has to pay when you have a claim before the insurance company will pay its share.
Endorsement: A form that allows you to amend what is covered by a policy. This is also referred to as a rider or amendment.
Exclusions: Specific incidents, items, etc. that are not covered under a policy.
Floater policy: A policy that provides coverage for specific named property items that need special insurance coverage.
Occurrence-based policies:
Policies that provide coverage for incidents occurring during the time the policy is
in effect, even if the claim is years later and the policy is no longer active.
Premium: The money you pay your insurance company to have insurance coverage.
Risk: The possibility of a loss or event that has the potential to interfere with an organization’s ability to fulfill its mandate.
Underwriter: An insurance company employee who decides if an insurance risk is acceptable, and determines the amount and terms that the insurance company will use to accept the risk.
Some terms in this glossary are provided by the Nova Scotia Office of the Superintendent of Insurance, Financial Institutions Division of the Department of Environment and Labour.