Commercial Insurance Definitions & Terms
Popular Commercial Insurance Definitions
Knowing popular commercial insurance definitions can help you save big when comparing various quotes and rates. According to Wikipedia: In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
Listed below are some of the more popular commercial Insurance definitions and terms all designed to help you better understand and simply the process of buying the correct commercial truck insurance or any other form of commercial insurance to protect you and your company from loss.
Commercial Insurance Definitions
Actual Cash Value (ACV) – Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year-old sofa will not be replaced at current full value because of a decade of depreciation. Understanding commercial insurance definitions and actual cash value will help you get the right policy for your needs.
