Cover
Whenever an insurance company confirms that they are prepared to insure a client they are said to provide him with “cover.” The word cover, when used in this context, has the same meaning as insurance or protection.
Another definition: Coverage by contract whereby one party to the contract agrees to provide indemnity (cover) to the other party should a loss occur under the terms of the contract. One of the terms will be that the insured must make regular premium payments and in return the insurer will provide the insured with cover. Cover can also be referred to as the “scope of the protection.”
A covered person – where an insurance contract refers to a covered person it is referring to the individual who is named as the insured in the contract. It can also include the spouse and other resident relatives or any other person as nominated in the contract. Some car insurance policies require that you nominate any person who will have your permission to drive your car. This person then becomes a covered person as well.
A cover note is a temporary certificate confirming the existence of an insurance policy. It will only be valid for a specified period and will be replaced by the official policy contract document once issued.