Insurance Quotes Key Terms

Learn important terms associated with business insurance quotes

Insurance quotes are easily obtained online. Businesses can now obtain an estimated cost of various forms of insurance within minutes. Various types of insurance they may wish to consider include liability, workers' compensation and group health insurance. As a business owner, it can be overwhelming to determine what these terms mean. A business should also fully understand the costs associated with obtaining these types of insurance. With this information, they can make important decisions about purchasing business related insurance products.

 

Actual cash value

The term actual cash value may be found on any insurance quote. It is the actual value in today's costs of the item insured. In insurance terms, the claim provided would factor in the depreciated value of the covered item.
Try: Accounting Glossary provides a complete definition of actual cash value.

Bodily injury liability coverage

Bodily injury liability coverage is often part of a vehicle insurance quote. It covers an injury or death that is the result of an accident covered under the policy. This type of coverage is often a key component of the quote. The rate may fluctuate depending on how much coverage is obtained.
Try: CarInsurance outlines in more detail what bodily injury liability coverage is.

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

Many employers will need to consider the affects of the Consolidated Omnibus Budget Reconciliation Act (COBRA) on their insurance. COBRA requires that employers who provide group health plans give employees the ability to temporarily carry over their coverage under the employer's current plan if they leave the job.
Try: Cobra Insurance offers a full explanation of this law and how it may affect a business' insurance provisions and costs.

Pre-existing condition

Laws define the requirement of employers to provide fair insurance to all employees, even those with pre-existing conditions. A pre-existing condition is a health concern existing prior to enrollment into the insurance plan. Often, the cost of group health insurance may be affected by these conditions.
Try: The United States Department of Labor outlines the importance of covering pre-existing conditions.

Deductible

A deductible is the out-of-pocket expense that must be paid prior to an insurance company covering a claim. In health insurance provided by an employer, the deducitlbe may be paid by the employee or employer. On asset insurance, the deductible is paid by the plan holder. The deductible amount is often an important factor in the overall cost of the insurance. A higher deductible may reduce costs.
Try: CBCA Connect Administrators provides more information regarding deductibles.

Replacement Cost

Insurance quotes may contain the term replacement cost. This type of protection provides for the cost of replacing the lost item in today's values.
Try: Allen Financial Insurance Group explains replacement cost in detail on their website.

Copyright © 2011 Business.com, Inc. All Rights Reserved.

---