Insurance Glossary

Premium

The amount you pay regularly (monthly or annually) to maintain your insurance coverage.

Deductible

The amount you pay out of pocket before your insurance starts covering costs.

Coverage / Sum Insured

The maximum amount your insurance will pay for a covered loss or claim.

Claim

A formal request to your insurance company for payment after a covered loss or event.

Policy

The contract between you and the insurance company that outlines your coverage, terms, and conditions.

Beneficiary

The person(s) designated to receive benefits from your insurance policy.

Liability

Coverage for damages or injuries you cause to other people or their property.

Comprehensive Coverage

Protection against a wide range of risks including theft, natural disasters, and non-collision damage.

Exclusion

Specific conditions, risks, or situations that are not covered by your insurance policy.

Endorsement

A change or addition to an existing insurance policy that modifies coverage.

Underwriting

The process by which insurers evaluate the risk of insuring you and determine the premium.

Reinsurance

Insurance purchased by insurance companies to share risk with other insurers.

Broker

An independent intermediary who works on behalf of the client to find the best insurance solutions. Sostengo is a broker.

Total Loss

When the cost to repair damage exceeds the value of the insured item, it's declared a total loss.

Roadside Assistance

Services provided when your vehicle breaks down, including towing, battery jump-starts, and minor repairs.

Co-payment (Copago)

A percentage of a medical bill that you pay after meeting your deductible.