What does Secondary Coverage mean? Read on to discover the definition & meaning of the term Secondary Coverage - to help you better understand the language used in insurance policies.
Secondary coverage refers to insurance that covers a risk after another insurance covering the same risk has been exhausted or has reached its limit. Proof that the other insurance has been used is needed for the secondary coverage to pay the excess.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Secondary Coverage. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: