Limits, aggregates and retentions
A limit describes a maximum subject to the policy’s terms; an aggregate may restrict total payments over a specified period or category. Deductibles and self-insured retentions allocate portions of a loss differently depending on wording. Review how defense costs affect limits and who manages claims within a retention.
Insured roles and property interests
A named insured, additional insured and loss payee have different roles. Additional insured protection concerns liability subject to an endorsement; a loss payee provision addresses an interest in insured property. A certificate holder is not automatically either. Confirm the exact entity and provision instead of treating these labels as interchangeable.
Claims triggers and valuation
Occurrence and claims-made structures use different conditions to determine when coverage may apply. Retroactive dates and reporting requirements can be important in claims-made forms. Replacement cost and actual cash value concern valuation, but settlement conditions still matter. These concepts should be applied using the policy text and facts.
Illustrative review scenario
A project manager uses additional insured and loss payee as interchangeable terms when requesting documents for leased equipment. Clarify whether the recipient seeks liability protection, a property interest or both. Obtain the relevant contract and policy provisions. Precise terminology helps prevent an administrative request from concealing a substantive gap in the arrangement. When a contract uses an insurance term differently from the policy, which wording governs each obligation? Keep the contractual promise and the insurer’s coverage grant separate and obtain clarification before relying on either.