Insurance Glossary

This glossary provides definitions for common insurance terms to help you better understand your coverage options and requirements.

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Broker: An insurance professional who represents multiple insurance companies and helps clients find the best coverage for their needs.

Claim: A formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.

Deductible: The amount of money that the policyholder must pay out-of-pocket before the insurance company begins to pay for a covered loss.

Employer's Liability Insurance: Insurance that protects employers if an employee sues for work-related injuries or illnesses beyond what's covered by statutory worker compensation schemes. Read our comprehensive guide for Southeast Asian SMEs
Endorsement: A written amendment attached to an insurance policy that alters the policy's coverage, terms, or conditions.
Exclusion: A provision in an insurance policy that eliminates coverage for certain risks, perils, or property.

Fire Insurance: Insurance that covers damage to property specifically caused by fire, lightning strikes, and sometimes explosions. It's a basic form of property insurance that protects against fire-related damage. Learn more about Fire Insurance vs Property All Risk Insurance

Group Hospitalization & Surgical Insurance (GHS): A group medical insurance plan that covers the cost of employees' hospital treatment and surgery, helping to pay for hospital bills if employees fall sick or get injured and need hospital care. Compare with other group insurance types
Group Personal Accident Insurance (GPA): A group insurance policy that covers accidental injuries or death sustained by employees, whether at work or outside work, providing financial compensation for unexpected mishaps. Compare with other group insurance types
Group Term Life Insurance (GTL): A group life insurance plan that provides a death benefit to an employee's family or beneficiary if the employee passes away during the coverage period, often including Total and Permanent Disability coverage. Compare with other group insurance types

Indemnity: The principle that an insured should be restored to the same financial position after a loss as they were in immediately before the loss occurred.

Liability: Legal responsibility for one's acts or omissions. In insurance, liability coverage protects against claims alleging that the policyholder's negligence caused harm to another person or their property.

Premium: The amount of money charged by an insurance company for coverage under an insurance policy.
Property All Risk Insurance: A comprehensive insurance policy that covers damage to property from all causes except those specifically excluded in the policy. It provides broader coverage than Fire Insurance, including protection against theft, water damage, and many natural disasters. Compare Property All Risk Insurance with Fire Insurance
Public Liability Insurance: Insurance that covers claims made by third parties (such as customers, visitors, or the general public) for injuries or property damage caused by your business activities. See our detailed guide for country-specific requirements

Underwriting: The process by which an insurance company examines risks and determines whether to accept an application for insurance and what premium to charge.

WICA: Work Injury Compensation Act in Singapore, which requires employers to provide compensation for workplace injuries regardless of fault. Also commonly refers to Work Injury Compensation Insurance across Southeast Asia. See our detailed guide for country-specific requirements