Reference
Insurance terms, in plain English.
A quick reference for the words that come up when you read a policy or talk to a broker. Something missing? Ask us — we'll add it.
- Actual Cash Value (ACV)
- The replacement cost of an item minus depreciation. Pays what the item is worth today, not what it would cost to replace new.
- Adjuster
- The insurer's representative who investigates a claim, evaluates damage, and negotiates settlement.
- Autoplan
- British Columbia's public auto insurance program administered by ICBC. Includes mandatory Basic and optional Enhanced coverages.
- Binder
- A temporary written or verbal agreement that provides coverage until the formal policy is issued.
- Broker
- A licensed intermediary who represents you (not the insurer) and can place your business with multiple insurance markets.
- Certificate of Insurance (COI)
- A document proving that a policy is in force. Often required by landlords, clients, or contract counterparties.
- Coinsurance
- A property-insurance clause requiring you to insure to a stated percentage of full replacement value. Under-insuring may reduce your claim payout.
- Comprehensive
- Auto coverage for non-collision losses — theft, vandalism, fire, hail, wildlife strikes, and falling objects.
- Deductible
- The amount you pay out of pocket before your insurance responds to a covered loss.
- Endorsement (Rider)
- A written amendment that adds, removes, or changes coverage under an existing policy.
- Errors & Omissions (E&O)
- Professional liability insurance covering claims that a service was provided negligently or advice caused financial loss.
- Exclusion
- Anything specifically not covered by a policy. Always read exclusions before binding.
- Extended Third-Party Liability
- Optional additional liability coverage above ICBC's mandatory limit of $200,000.
- General Liability (CGL)
- Business insurance for bodily injury, property damage, and personal & advertising injury caused by your operations.
- ICBC
- Insurance Corporation of British Columbia — the Crown corporation that administers Basic Autoplan and optional coverages.
- Loss of Use
- Coverage that pays for a rental vehicle or living expenses while your insured property is being repaired.
- MGA (Managing General Agent)
- A wholesale intermediary that has underwriting authority delegated from one or more insurers.
- Named Insured
- The person or entity specifically listed on the declarations page as insured under the policy.
- Non-Trucking / Bobtail Liability
- Liability coverage for an owner-operator's truck when it's being used outside the carrier's dispatch.
- Occurrence
- Loss trigger based on when the event happened. Contrast with 'claims-made', which triggers on when the claim is reported.
- Peril
- The specific cause of loss — e.g. fire, theft, wind, water damage.
- Premium
- The amount you pay for coverage, typically annually or monthly.
- Replacement Cost
- The cost to replace damaged property with new property of like kind and quality, with no deduction for depreciation.
- Strata Deductible Coverage
- Condo coverage that responds when you are assessed the strata's deductible for a loss originating in your unit.
- Subrogation
- The insurer's right to pursue a third party who caused a loss it paid on your behalf.
- Umbrella Policy
- An additional layer of liability protection above your primary personal or business policies.
- Underwriting
- The insurer's process of evaluating risk and deciding whether — and on what terms — to offer coverage.