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Glossary > D > "Deductible" Definition

Deductible

In the US, the amount (normally fixed) which a policyholder is obliged to pay prior to an insurance company paying a claim.For instance, if a company insures its assets up to $100m with a deductible of $10 million, and it has a loss of $100 million, the company has to take care of $10 million, and the insurance company"s liability is $90 million.

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Deductible - In the US, the amount (normally fixed) which a policyholder is obliged to pay prior to an insurance company paying a claim.For instance, if a company insures its assets up to $100m with a deductible of $10 million, and it has a loss of $100 million, the company has to take care of $10 million, and the insurance company"s liability is $90 million.

Deductible : in the us, the amount (normally fixed) which a policyholder is obliged to pay prior to an insurance company paying a claim.for instance, if a company insures its assets up to $100m with a deductible of $10 million, and it has a loss of $100 million, the company has to take care of $10 million, and the insurance company"s liability is $90 million.