Purchasing an insurance policy is a great way to live with peace of mind that you and your property are protected, but to get the most adequate coverage, you need to familiarize yourself with the complicated jargon used in contractor insurance Colorado policies. Here is a little help, a few of the most common insurance terms defined:
- Aggregate – the maximum amount that the insurer will pay for all the losses covered in the insurance during a given period;
- Claim – a written document prepared by the policy holder in which the policy holder informs the insurer regarding the sustained loss and requests payment;
- Deductible – the amount defined in the insurance policy that the insured person or entity must pay before the insurer pays the claim;
- Liability – coverage paid by the insurer to a third party if the policy holder is found guilty of causing physical or property damage to that third party;
- Insurance premium – the amount of money charged by the insurance provider from the policy holder for providing payment in case of the events that the policy offers coverage for. The amount is usually paid monthly, but quarterly, semi-annual and annual payments are also among the options.