Financial

Adequacy of coverage

Adequacy of coverage

A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Adequacy of Coverage

The extent to which an asset or investment is protected from loss by insurance or hedging. For example, if one owns a house, there is the risk that it could burn down. Adequacy of coverage measures the extent to which the insurance benefit covers the value of the house.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive
Each person should 2 make an independent decision about his/her selection of a plan based on individual circumstances and adequacy of coverage in consultation with trusted advisors Other information is available through your state's Exchange.
As implementation of the Affordable Care Act continues, "it may be worthwhile to consider not only the number of uninsured children in the United States but also the adequacy of coverage for those with current insurance," wrote Dr.
Krytox DF, DF/IPA and DF/W dispersions available as concentrates in 14 lb, isopropyl alcohol and water allowing user to customize the dispersion for ease of application and adequacy of coverage. Specially formulated, ready-to-use Krytox products also available as release agents for specific applications.
Among managers of enterprises of unprecedented size, there is unease about the adequacy of coverage available under insurance and other loss-financing arrangements.
Employers, fiduciaries and risk managers would be wise to review policies in place to determine the adequacy of coverage and limits to protect them against today's increasing liability exposures.
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