Canadian insurance, in plain language
Insurance glossary
Clear explanations of common Canadian insurance terms in English, Simplified Chinese, and Traditional Chinese.
Browse insurance articlesGeneral insurance
Claim
A request asking an insurer to respond to a loss or event under an insurance policy.
Also called: insurance claim
Coverage
The protection provided by an insurance policy for specified risks, property, people or liabilities.
Also called: insurance coverage · protection
Deductible
The agreed amount you pay toward a covered claim before the insurer pays the remaining eligible amount.
Also called: policy deductible
Endorsement
A document that changes, adds to or restricts the terms of an insurance policy.
Also called: policy change form · rider
Exclusion
A circumstance, cause of loss, property or person that the policy does not cover.
Also called: excluded loss · policy exclusion
Insurance broker
A licensed insurance intermediary who helps clients assess needs and arrange coverage with available insurers.
Also called: broker · licensed broker
Insurer
The insurance company that enters into the policy and assumes the covered financial risk.
Also called: carrier · insurance company
Liability coverage
Coverage that may respond when you are legally responsible for another person's injury or property damage.
Also called: liability insurance
Named insured
A person or organization specifically identified as an insured in the policy declarations or certificate.
Also called: named policyholder · primary named insured
Policy limit
The maximum amount an insurer may pay under a specified coverage, claim or policy period.
Also called: coverage limit · limit of insurance
Policyholder
The person or organization that owns the insurance policy and has the contractual rights and responsibilities attached to it.
Also called: policy owner
Premium
The price you pay for insurance, commonly billed monthly or annually.
Also called: insurance premium
Renewal
The continuation or replacement of an insurance policy for a new policy period.
Also called: policy renewal
Underwriting
The insurer's process for assessing risk and deciding whether to offer coverage, on what terms and at what price.
Also called: risk assessment
Auto insurance
Collision coverage
Optional vehicle coverage that may pay for damage caused by a collision or upset, subject to the policy and deductible.
Also called: collision insurance · collision or upset
Comprehensive coverage
Optional vehicle coverage for specified non-collision causes such as theft, vandalism, fire or certain weather events.
Also called: comprehensive · comprehensive insurance
Third-party liability
Auto coverage that may protect you when you are legally responsible for injuring someone or damaging their property with a vehicle.
Also called: TPL · third-party liability coverage
Home insurance
Actual cash value
A valuation of damaged property that generally reflects its value at the time of loss, often considering depreciation.
Also called: ACV · cash value
Additional living expenses
Coverage for eligible extra costs of maintaining a comparable standard of living when a covered loss makes a home unfit to live in.
Also called: ALE · loss of use
Replacement cost
The cost to repair or replace damaged property with a similar item without deducting depreciation, subject to policy conditions.
Also called: rebuilding cost · replacement cost coverage
General information only. Coverage and terminology can differ by province, insurer, and policy wording. Consult your policy and a licensed insurance professional.