When a term is not defined in a policy, courts generally go to a standard desk reference since that is what the average insured would do. Merriam Webster Online defines damage as: “loss or harm resulting from injury to person, property, or reputation.”

What does OL mean in insurance?

Ordinance or Law Coverage — coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings.

What does Md mean in insurance?

MD stands for Machinery Damage (insurance)

What is a good property damage liability?

States generally require property damage liability coverage and bodily injury liability coverage. For example, in California, drivers are required to have at least $5,000 of property damage liability coverage. In Texas, the minimum amount for property damage liability coverage is $25,000.

What is a coverage in insurance?

Insurance coverage refers to the amount of risk or liability that is covered for an individual or entity by way of insurance services. The most common types of insurance coverage include auto insurance, life insurance and homeowners insurance.

What is an insurance customer called?

Policyholder. The person or entity specifically identified as the named insured in an insurance policy. This person is also referred to as the named insured.

Which is the best definition of the word damage?

Also found in: Dictionary, Thesaurus, Medical, Financial, Acronyms, Idioms, Encyclopedia, Wikipedia . DAMAGE, torts. The loss caused by one person to another, or to his property, either with the design of injuring him, with negligence and carelessness, or by inevitable accident. 2.

How does accidental damage work in an insurance policy?

Accidental damage is usually subject to a policy excess for each claim. The value of the insured items is agreed by you and the underwriters at the start of the period of insurance. This value then applies at the time of a claim. All risks cover provides the broadest form of insurance cover.

Which is the best definition of the term insurance?

A principle of insurance which states that the individual should be restored to the approximate financial position he or she was in prior to the loss. A social device where many share the losses of a few by transferring a portion of the risk of loss to the insurance company in exchange for a certain cost.

When does an insurance company pay for negligence?

In cases of liability, the insurance company will typically pay for your legal defense, but it may not pay for subsequent damages if you lose. Negligence is a case-by-case assessment, so you should always do whatever seems reasonable to protect your property and that of others.