7 Insurance Terms Your Customers Don’t Know

November 11, 2022

When you spend all day thinking about insurance, it can be easy to forget that the language you use every day may not be familiar to those outside of the insurance business – including your customers.

But when we fail to define key insurance terms for customers, they may feel confused or frustrated when looking at policy information – the opposite of what we want.

We’re probably all guilty of speaking in insurance terms without explaining what we mean. Next time you slip into jargon, refer to these handy explanations to help your customers understand what you’re talking about.

“Premium” and “Deductible”

Premiums and deductibles are key parts of any insurance policy. Customers likely understand that premiums and deductibles are related to cost – always of interest – but they may not understand exactly what they mean or how they relate to each other.

Clearly defining these terms can mitigate misunderstandings about cost down the road. Here are some key points to include whenever you talk about premiums and deductibles:

“Liability” and “Indemnity”

The terms “liability” and “indemnity” are often spoken of together. These terms can be particularly confusing to customers because both “liability” and “indemnity” can mean different things and can be used in different ways when talking about insurance.

Here are a few points to refer to when you define these terms for customers:

Note: some customers may also ask about “indemnity insurance.” They’re likely referring to E&O or malpractice insurance, which they may require for business operations.

“Admitted,” “Non-Admitted,” and “Carrier”

There is a good chance that your customers don’t understand the difference between admitted and non-admitted carriers… or even what a carrier is. WE recommend that you define these terms right off the bat.

Here are key points to mention when you do:

Join the We Insure Family for More Value-Adding Support

Joining We Insure is a great way to support your independent insurance business. As a We Insure franchisee, you gain access to not only marketing assistance but also multiple carrier partners, customer service teams, and back-end support.

This means you’ll have more time to explain insurance jargon to customers, build stronger relationships, and generally find ways to meet your customers’ individual needs.

Tap into the power of We Insure! Learn more about how you can join our team.

The information contained in this page is provided for general informational purposes only and may not be applicable to all situations. We Insure makes no guarantees of results from the use of this information.

The information contained in this page is provided for general informational purposes only and may not be applicable to all situations. We Insure makes no guarantees of results from the use of this information.