What does Financial Interest Coverage mean? Read on to discover the definition & meaning of the term Financial Interest Coverage - to help you better understand the language used in insurance policies.
Financial Interest Coverage
Provides insurance protection to a parent company against the risk of damage to the parent's financial interest in its uninsured local subsidiaries. What this means is that, where the local subsidiary cannot be directly insured by the global insurance company under the master policy for licensing, regulatory, or other reasons, the parent is nevertheless insured for its financial interest in that subsidiary. So, if the subsidiary suffers a loss, the parent company is covered for its financial interest in that loss suffered by the subsidiary.
We hope the you have a better understanding of the meaning of Financial Interest Coverage.