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CANADIAN INSURANCE TERM

Coverage

The protection provided by an insurance policy for specified property, people, liabilities, events or expenses, subject to limits, exclusions, deductibles and conditions.

Plain-language definition. A real policy, endorsement and provincial law can use more specific wording than a glossary summary.
UpdatedAugust 31, 2026
ByCanada Rate Lab Editorial Team
SourcesIBC + primary sources
MethodologySource-led research
TERM SNAPSHOT
TermCoverage
ContextCanadian insurance
Source typeIndustry glossary
Policy wordingControls claim

What does Coverage mean?

The protection provided by an insurance policy for specified property, people, liabilities, events or expenses, subject to limits, exclusions, deductibles and conditions.

A policy can contain several different coverages. Saying a person 'has insurance' does not identify which causes of loss or amounts are actually protected.

EXAMPLE

Coverage in practice

An Ontario auto policy can contain liability, accident benefits, uninsured automobile and property-damage coverages with different rules and limits.

Related Canada Rate Lab guides

Ontario Auto CoverageHome InsuranceExclusion
Browse the glossary A–Z →

Exclusion

A policy provision that removes or restricts coverage for specified causes of loss, property, activities, circumstances or persons.

Endorsement

A document that changes, adds to or removes part of the standard terms of an insurance 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.

Primary reference

Insurance Bureau of Canada — Insurance GlossaryCanada Rate Lab — Sources & Data