Defining Insurance Jargon

Insurance has your back by ensuring your assets are covered, but insurance jargon can often get in the way of you clearly understanding your policy. To help make sense of your insurance policy, here are 10 common insurance terms that could help when both reviewing policies or speaking with your agent.  

Line(s) of Insurance: A class of type of insurance e.g. home insurance, auto insurance, commercial insurance, etc. 

  • Example: Charles has two lines of insurance with OKFB: Auto Insurance and Farm & Ranch Insurance.

Deductible: A specified amount of money that a policyholder must pay before an insurance company will pay a claim. 

  • Example: Esther has to pay a deductible of $300. After she pays her deductible, OKFB will pay the remainder of the claim that is stated in her policy.

Claim: A request or demand for payment from an insurance carrier, as defined in the policy.

  • Example: Carl and Robert filed a claim after a tornado impacted their car and farm. See how Billy and the rest of our team immediately worked to fulfill it here.

Coverage: The extent an item or property is insured in the event of an accident. 

  • Example: Daniel got a full coverage auto insurance policy with OKFB, so he is covered in the event that he is in an accident. 

Umbrella Coverage: Provides higher limits of protection against bodily injury or property damage claims by a third party. 

  • Example: After careful consideration, Anthony decided that umbrella coverage would offer greater protection and peace of mind.

Risk: The chances a loss could potentially occur. 

  • Example: Christie carefully explained the risks associated with lower coverage insurance policies, so I opted for more coverage. 

Policy: The contract between a policyholder and insurance carrier. 

  • Example: Lauren has an auto insurance policy with OKFB Insurance, so OKFB insures her vehicle in the case of an accident.

Premium: Cost an insurer sets for the coverage listed in an insurance policy.  

  • Example: Marco’s premium for his homeowner insurance is $1,200, so he pays $100 every month. 

Quote: An estimate of premium for a specific line of insurance/policy. 

  • Example: Ashley just bought a new home and was looking for the best coverage on Home Insurance, so she used OKFB’s Instant Homeowners Quote to find OKFB’s prices.

Dwelling: A place of residence, e.g. a home, mobile home, etc. 

  • Example: After talking to my agent, I got Dwelling Fire Insurance on my vacation home in Broken Bow. 

Check out our glossary for more common insurance terms. If you have any questions or want further clarification about an insurance term contact your OKFB agent. Also, don’t forget to check in regularly with your agent to ensure your coverage is up to date. We’re here to help you through the unexpected.

Commercial Insurance 101

Owning a business takes dedication and vision, and preparation for the long-term is necessary. No matter the size of your operation, part of preparing for the unexpected means securing protection for your employees and assets with commercial insurance. The right policy could save you money when accidents cause damage to equipment or property. If you’re new to owning a business, or just need a refresher on the basics, here are some coverage options to keep in mind when considering a commercial policy: 

Commercial Property

The property you choose for your business operations is crucial to its overall success. So is the coverage you select to help protect the property and everything inside of it. Things like building structures, inventory, equipment and leased property can be protected under commercial property insurance. This is a great place to start when getting a policy. 

Commercial Auto

From hauling parts to delivering flowers, your company vehicles work as hard as you do. If you have company vehicles, you’ll want to secure commercial auto coverage for them. Features such as auto liability and uninsured motorist will not only protect your vehicle, but will also provide extra coverage for you, your passengers or other drivers of the automobile. 

Commercial Liability

We know small businesses don’t always feel so small. Let us help take one worry off of your mind with a commercial liability policy. Liability claims can be devastating to a small business, so this insurance option can help protect your business from expensive liability lawsuits. Commercial liability coverage ensures that you and your assets are covered in case of an injury or property damage to others that occurs as a result of your operations. 

Commercial Umbrella

Umbrella policies are named for the overarching protection they provide on top of general liability coverage. A commercial umbrella policy can provide additional coverage to your business that may not come with your general liability policy. This will help make sure your business is still covered in a situation where your general liability policy doesn’t fully cover the cost of a lawsuit. 

When it comes to deciding what coverage fits your unique business needs, your agent can help you choose the right policy. Contact an OKFB agent today for more information about how we can help keep your business protected from the unexpected with our Commercial Insurance coverage. 

Top Insurance Questions Answered by Insurance Agents

When it comes to shopping for Home, Auto, Life and Commercial Insurance, it can be hard to know where to start. No matter how big or small your insurance questions may be, our agents are here to help! Below are five common questions Oklahomans have when trying to decide what insurance is best for them.

Q: When do I need to update my insurance coverage?

A: Major life events, such as moving out on your own, purchasing a car, getting married, etc. These are good prompts to talk with your agent when discussing your coverage. We recommend setting an annual review with your agent. This is the opportunity to discuss changes you’ve experienced in the last year and what you anticipate in the next.

Q: How much life insurance do I need?

A: Everyone’s needs vary when it comes to Life Insurance. There are factors to consider that could affect it. For instance, the ages of your spouse and/or children, future expenses like mortgage or college and more. To get an idea of what might be a good fit for you, check out this Life Insurance calculator.

Q: Does my car insurance cover other drivers?

A: Typically, Auto Insurance follows the vehicle, not the driver. It’s important to consider what your unique coverage entails. For example, if your friend gets into a wreck while driving your car and you’re not insured for collision coverage, they are no more covered than you would have been as the driver. Since policy terms vary, it’s always best to contact your insurance agent before loaning out your car.

Q: What is umbrella insurance?

A: Personal umbrella insurance is a type of insurance designed for when you need extra liability coverage above another insurance policy. It helps supplement items not covered by other policies (such as Home or Commercial Insurance) and could kick in, for example, if you were to be held liable for an amount greater than what one of your other insurance policies covers. Talk to your agent to discuss how much coverage will be right for you, your home or your business.

Q: What type of insurance coverage is a “must” for small business owners?

A: Insurance agents are trained in knowing what insurance products are most suited to your business, your budget and your goals. Many business owners like to start the conversation with Commercial General Liability Insurance to protect their assets in case of injury or property damage. Talk with your agent to discuss how much coverage is right for you!

You can learn more about the right coverage for your unique needs by contacting an OKFB agent near you.