Definition

Insurance you can choose to buy for extra protection beyond what is required. It gives you the flexibility to customize your coverage based on your needs.

What to consider

  • Know what events are covered under your policy.
  • Review definitions carefully in the policy document.
  • Ensure that you understand the conditions triggering coverage.

Real world scenarios

  • A car accident is classified as an insured event under an auto policy.
  • A natural disaster triggers an insured event in a property insurance policy.
  • An insured event occurs when a covered injury is sustained during an activity.

Related terms

Insurance & Financial Protection