Coverage

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Coverage

Coverage

1. The specific insured events for which an insurance company will pay a benefit. For example, a life insurance policy provides coverage in the event of death. Likewise, a health insurance policy provides money in the event of illness. Generally speaking, an insurance policy outlines what it covers and the benefits it provides under different circumstances.

2. A measure of a company's ability to pay its fixed liabilities. It is calculated by determining by subtracting its fixed payments from its operating income. High coverage indicates that the company can easily make its payments and indeed is able to set funds aside to do so in the event its income declines. Low coverage means that the company can make its payments but that it has less flexibility in doing so. A negative number indicates that the company cannot pay its fixed liabilities. The payments included in this calculation are lease payments, dividends on preferred stock, and debt service. It is also called fixed-charge coverage.
References in periodicals archive ?
We're seeing monthly coverage limits come back up from being very conservative after the fallout from managed care," said Mike Simonds, vice president of marketing and product development for UnumProvident Corp.
What coverage does private company D & O insurance actually provide?
Insurance coverage provides protection for the income and business regardless of the size of the home-based business.
While good liability coverage is essential for every business, child-related businesses need specialized, high quality protection.
We have three patterns in our quick-passing game that combine the slant route with another route to attack the secondary coverage.
Every few years we have an independent broker look at each client's insurance portfolio and make recommendations about coverage and premiums to keep our brokers on their toes: We have found this to be a useful tool.
Lost key coverage provides coverage for the replacement of locks if the cleaning contractor loses the master key to a building.
He said this was a result of agents around the country "doing a good job of protecting themselves from E&O claims" by making sure their policyholders had the right coverages and carefully explaining coverage.
Homeowner's insurance savings are provided when you know what to look for in the coverage.
The coverage behind it -- 3 under 3-deep or 4-under 2-deep -- will be also determined by the situation, but with consideration also to the make-up of the opponents.
Liability coverage is the most important type of coverage.