Insurance coverage is the protection provided by a particular contract for specified people, property, activities or events. It cannot be established solely from a product name, premium or headline benefit.
The distinction that matters
A sum insured is a limit, not proof that a particular cause of loss is accepted. Definitions, exclusions, endorsements and conditions all form part of the coverage assessment.
What to check
- Who and what are insured.
- The event and relevant definition.
- Exclusions, conditions and endorsements.
- Limits, sublimits and excesses.
Example to discuss
Ask the provider to trace a realistic event through the insuring clause, definitions and exclusions, then show how the settlement limit would be applied.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.