Legal Definitions - insurance policy

An insurance policy is a contract between an insurer and a policyholder. It is a document that details the terms and conditions of the contract. The policyholder pays a premium to the insurer, and in return, the insurer agrees to provide coverage for certain risks or losses.

• Accident policy: This type of policy provides coverage for bodily injuries sustained during the policy term.
• Homeowner's policy: This policy provides coverage for risks such as fire, water damage, burglary, and personal injury caused by the homeowner's negligence.
• Commercial general-liability policy: This policy covers most commercial risks, liabilities, and causes of loss, including situations where a business is liable to a third party for personal injury or property damage.

These examples illustrate how insurance policies provide coverage for specific risks or losses. The policyholder pays a premium to the insurer, and in return, the insurer agrees to provide coverage for those risks or losses. The terms and conditions of the policy are detailed in the contract.