Coverage specification
Learn how an insurance policy defines the specific protections or risk coverages for your customers by using the Insurance claims application.
Coverage specifications are important as they outline the scope and limits of the protection that is provided by a policy.
The coverage specification covers the following details for an insurance product model:
- What coverage is included
- The type of losses or risks, such as accidents, injuries, or property damage, that are covered under the policy.
- Options for specific coverages
- Each loss or risk may have several types of coverage options. For instance, in a health insurance policy, the coverage could include options for hospital visits, medications, surgeries, or preventive care. Each policy has different levels of benefit.
Each coverage option is designed to meet specific needs, offering flexibility for your policyholders so that they can select the protection that fits their situation or preferences. Examples of coverage options include (in U.S. dollars):
- Major bone fractures, with coverage options of $10,000, $20,000, and $30,000.
- Travel baggage delays, with coverage options of $200 (24 hours), $300 (12 hours), or $500 (12 hours).