Perils
Perils are the causes of a loss - events that cause damages to properties or injuries to persons. To qualify for insurance, a peril must not be excluded from the policy coverage.
These are 2 types of insurable perils:
Human: Perils caused by human behaviour, such as vandalism, theft and arson.
Natural: Perils caused by natural occurrences, such as snowstorms, fire and tornadoes.
Please refer to official policy documents for the full list of excluded perils.
Premium
Insurance premium is the amount of money you pay in exchange for insurance coverage, in other words, the cost of an insurance policy.
Premiums are based on the following factors such as:
Business industry
Business location
Operation processes
Years of experience
Coverage limits and policy options
Claims history
Deductible levels
Deductible
A deductible is a specified amount of money laid on the policy that you are responsible for before the insurance company will cover the rest of the claim.
Example: If you suffered a covered loss of $15,000 and your policy contains a $1,000 deductible; You pay the first $1,000 and the insurance company will pay for the remaining $14,000.
On the other hand, if the damage amount is less than your deductible, the insurance company will not cover such a claim