Canadian Insurance Glossary
Find the language in your policy. Browse 34 plain-language definitions, with examples and links to coverage guides.
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Reading a policy (9)
People & documents (7)
Claims & property values (6)
Auto coverage (3)
Renewal & cancellation (2)
Actual Cash Value
The value of insured property after relevant factors such as depreciation are considered, subject to the policy wording.
Additional Insured
A person or organization added to another party's liability policy for specified protection arising from the named insured's operations, subject to the endorsement and policy wording.
Additional Living Expenses
Coverage for eligible extra living costs when a covered loss makes the insured home temporarily unliveable, subject to policy limits and conditions.
Business Interruption Insurance
Coverage that can help with eligible lost business income or continuing expenses when operations are interrupted by a covered insured event, subject to the policy wording and period of indemnity.
Cancellation
The ending of an insurance policy before its scheduled expiry date by the insurer or policyholder, subject to policy terms and applicable law.
Certificate of Insurance
A document that provides evidence of specified insurance coverage in force at the time the certificate is issued, subject to the underlying policy.
Claim
A request by an insured person or other eligible claimant for payment, benefits or another response under an insurance policy after a loss or event.
Claims Adjuster
A person who investigates and evaluates an insurance claim, gathers information and helps determine how the policy applies to the reported loss.
Collision Coverage
Optional automobile physical-damage coverage that can respond to certain damage to the insured vehicle caused by collision with another object or by upset, subject to the policy wording and deductible.
Commercial Crime Insurance
Business insurance for specified theft, dishonesty or fraud losses, such as certain employee-dishonesty or money-and-securities exposures, subject to the selected crime form and endorsements.
Commercial Property Insurance
Business insurance designed to protect insured buildings, contents, stock, equipment or other physical assets against covered causes of loss, subject to policy limits, deductibles and exclusions.
Comprehensive Coverage
Optional automobile physical-damage coverage for certain losses other than collision, commonly including risks such as theft, fire, vandalism or specified weather events, subject to the policy.
Coverage
The protection provided by an insurance policy for specified property, people, liabilities, events or expenses, subject to limits, exclusions, deductibles and conditions.
DCPD
Direct Compensation Property Damage is an Ontario auto insurance coverage that can compensate an insured person for certain damage to their vehicle and contents when another identified driver is responsible, subject to Ontario rules and the policy.
Deductible
An agreed amount the insured person is responsible for paying on a covered claim before the insurer pays the remaining eligible amount.
Depreciation
A reduction in the value of property associated with factors such as age, condition, wear or obsolescence.
Directors & Officers Liability Insurance (D&O)
Management-liability insurance that can protect directors and officers, and in some forms the organization, against covered claims alleging wrongful or negligent acts in the course of management duties.
Endorsement
A document that changes, adds to or removes part of the standard terms of an insurance policy.
Exclusion
A policy provision that removes or restricts coverage for specified causes of loss, property, activities, circumstances or persons.
Insurance Binder
Temporary evidence of insurance coverage issued while the formal policy documents are being prepared, subject to the terms stated in the binder.
Insurance Broker
An insurance intermediary who can help a consumer or business identify insurance options and arrange coverage with insurers they represent or access, subject to licensing and market availability.
Insured
A person or organization that is protected under an insurance policy, subject to the policy definitions, conditions and coverage.
Insurer
The insurance company that underwrites a policy and assumes covered risk in exchange for the premium, subject to the insurance contract.
Liability
Legal responsibility for injury, damage or loss suffered by another person or their property.
Peril
A cause of loss or damage, such as fire, theft, wind or another event described in the policy.
Policy Limit
The maximum amount an insurer will pay for a covered loss, coverage or policy period, subject to the specific wording of the policy.
Policyholder
The person or organization that owns or holds an insurance policy and is responsible for the contractual relationship with the insurer.
Premium
The amount charged by an insurer for providing insurance coverage for a specified period, subject to the policy terms and applicable taxes or fees.
Product Liability Insurance
Liability protection for covered bodily injury or property-damage claims arising from products, including exposures faced by manufacturers and distributors and certain completed-work claims.
Professional Liability Insurance
Liability coverage designed for certain claims arising from professional services, advice, errors or omissions, subject to the policy wording.
Renewal
The continuation or replacement of an insurance policy for a new policy term after the current term ends, usually with updated premium and policy information.
Replacement Cost
A method of valuing insured property based on the cost to replace it with comparable property, subject to policy conditions, limits and settlement rules.
Sublimit
A lower limit that applies to a particular type of property, loss or expense within a broader insurance coverage limit.
Underwriting
The process an insurer uses to assess a risk and decide whether to insure it and on what terms, within applicable law and regulation.
Using the glossary with your policy
Each definition includes an example, related concepts and guides that put the term in context. Read the definition alongside your policy, its limits, exclusions and endorsements.
Policy wording and applicable provincial rules determine how coverage works for a particular claim.