Two policies that sound alike can protect very differently
Insurance is full of near-twins — names a letter apart that pay in completely different situations. Here are the coverages people most often mix up, explained side by side.
Replacement cost pays to rebuild or replace with new; actual cash value subtracts depreciation first, paying what the item is worth today. The gap can be thousands after a total loss.
Neither is in a standard homeowners policy. Flood covers rising external water (a separate policy); water backup covers water coming up through drains or a sump pump (an endorsement).
Homeowners covers an owner-occupied home; a landlord policy covers a home you rent out (building and your liability, not the tenant's belongings); renters covers a tenant's belongings and liability, not the building.
The HOA master policy covers the building and common areas; your HO-6 covers the interior "walls-in," your belongings, upgrades, and personal liability. The HOA bylaws set where one stops and the other starts.
Homeowners caps payouts on categories like jewelry, art, and watches. Scheduling (a floater) itemizes those valuables for full value, usually with no deductible.
For a classic car or boat, an agreed-value policy pays a pre-set amount you and the insurer settle on; a standard actual-cash-value policy depreciates the item, often paying far less.
Raising home or auto limits adds protection on those policies only; an umbrella adds a layer of liability across all of them at once, usually more cost-effectively at high limits.
A business owner's policy bundles general liability with property and business income; general liability alone only covers third-party bodily injury and property damage. People assume a BOP is just GL.
General liability covers physical harm — a slip-and-fall or damaged property; E&O covers financial harm from your professional work, advice, or mistakes.
An umbrella extends limits and can add broader coverage that drops down over several policies; excess simply adds more limit on top of one policy, following its terms.
An occurrence policy covers incidents that happen during the term no matter when the claim is filed; a claims-made policy only responds if the claim is filed while the policy (or its tail) is active.
Workers' comp pays statutory medical and wage benefits regardless of fault; employer's liability defends the business against injury lawsuits that fall outside the no-fault system.
Property covers physical damage to your building and contents; business interruption replaces the income you lose while you can't operate because of that covered damage.
General liability covers your premises and operations; product liability covers harm caused by a product you made, sold, or distributed after it leaves your hands.
Crime/fidelity covers theft by employees and certain fraud; cyber covers data breaches, ransomware, and social-engineering fraud. Which one pays for a tricked wire transfer is a real gray zone.
Builders risk covers a structure while it's under construction; commercial property covers a completed building; general liability covers harm to others — three different jobs on one project.
A certificate proves coverage exists; an additional insured is actually granted protection under the policy; a waiver of subrogation gives up the insurer's right to recover from a partner. Contracts often require all three.
D&O protects leaders and the entity over governance and business decisions; E&O protects against claims that your professional services were negligent or wrong.
Tech E&O covers a failure in the technology product or service you deliver to clients; cyber covers your own network breach and the data you hold. They overlap but are not the same.
A surety bond is a three-party guarantee that you'll perform an obligation, and you repay the surety if it pays out; insurance protects you against your own losses. A bond is not coverage for you.
Malpractice covers claims arising from clinical or professional care; general liability covers ordinary premises risks like a patient slipping in the waiting room.
Term covers a set number of years with no cash value; whole life is permanent with guaranteed cash value; universal life is permanent with flexible premiums and cash value tied to interest or an index.
Own-occupation pays if you can't do your specific job, even if you could do another; any-occupation only pays if you can't do any job suited to you — a much harder bar.
Long-term care pays for help with daily living and nursing care; long-term disability replaces income you lose because you cannot work. Similar names, opposite purposes.
Fixed pays a guaranteed rate; variable rises and falls with investments you choose; indexed ties growth to a market index with limits on both gains and losses.
Advantage is an all-in-one private plan with networks and often extra benefits; Medigap keeps Original Medicare and its nationwide access while covering the deductibles and coinsurance it leaves you.
Original Medicare (Parts A & B) is the government program you can pair with separate drug and supplement plans; Advantage (Part C) is a private plan that bundles it all with network rules.
They differ in whether you need referrals and how far your network reaches: HMO is the most restrictive, PPO the most flexible, with EPO and POS in between.
A deductible is what you pay before the plan helps; a copay is a flat fee per service; coinsurance is a percentage you share after the deductible. All three can apply to one visit.
An HSA is yours to keep and roll over, paired with a high-deductible plan; an FSA is employer-run and usually use-it-or-lose-it; an HRA is funded and owned by the employer.
ICHRA and QSEHRA reimburse employees for individual coverage they buy themselves; a group health plan is one policy the employer sponsors for everyone.
In a fully-insured plan the carrier takes the claims risk for a fixed premium; in self- or level-funded plans the employer takes on some of that risk in exchange for potential savings and claims data.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
Let’s start your Individual & Family Health Insurance quote
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
Let’s start your Supplemental Health / Critical Illness & Accident quote
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best life & health fit. It takes about 2 minutes to begin.
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Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best employee benefits fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best employee benefits fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best employee benefits fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best employee benefits fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best employee benefits fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best employee benefits fit. It takes about 2 minutes to begin.
Let’s start your Renewal & Enrollment Strategy quote
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best employee benefits fit. It takes about 2 minutes to begin.
Share a few details and a licensed Sterling Lloyd advisor will shop 200+ carriers to find your best employee benefits fit. It takes about 2 minutes to begin.